The crypto world has taken a hard hit as a recession looms in the economy.
Over 12,000 cryptocurrency projects have seen little to no trading activity in the past few months, with people suspending and shying away from speculative and risky investments.
Many digital tokens are sitting untraded as even the best crypto bets remain unappealing to most investors.
A study by data supplier Nomics points out that there were 1,500 inactive cryptos in 2020 and 3,700 in 2021 – so the looming recession has a massive impact.
In addition to looming economic woes, several crypto businesses have declared bankruptcy, and the war between Russia and Ukraine has driven global uncertainty to new heights.
It was during the last bear market in 2018 when cryptos first saw their rise to prominence, but a combination of the above factors has led to an increasing number of zombie tokens – which should continue to rise over the next year.
It’s eventuality crypto either planned for or will find themselves a victim of.