Cryptocurrency world looks like you went on a big diet Through this bear market, as the number of active tokens decreased by almost 1,000 – Statista Says Largest Yearly Decline EverThe cut has brought the number of active cryptocurrencies down from a 2021 high of 10,397 to a (still) staggering 9,310. Of course, there is more to the cryptocurrency world than Ethereum and Bitcoin. But that doesn’t mean every project deserves attention.
2022 has been a challenging year for the cryptocurrency industry. In a year of severe economic uncertainty, the entire market was shaken to its core following the high-profile implosion of FTX (for which part is still being picked up). As a result, fear, uncertainty and doubt about space are at an all-time high. This has led to a staggering 72% drop in the market capitalization of the cryptocurrency market, from his $3 trillion high in November 2021 to $850 billion today.
Interestingly, the explosion in the number of tradable tokens from November 2021 to January 2022 surged from around 2,400 to a maximum of 10,397. When the grass turns green, everyone wants to camp. The bull market soured confidence and greed flourished. It is no coincidence that during the period when cryptocurrency prices reached all-time highs, so many tokens were launched, each with its own “project”. The decline in token count can be attributed primarily to one of two things: Token projects have not survived the winter of cryptocurrencies as the amount of investment from both users and entities has dropped significantly. Or it’s not meant to bridge the gap between today and tomorrow.
Coingecko, who uses a different analytical method than Statista’s source (CoinMarketCap), paints a more explosive picture. An estimated 8,000 tokens were issued throughout 2021, of which only 59% of his has survived to date.
Cryptocurrency advocates are quick to compare cryptocurrency cycles to other high-impact technology cycles, such as the events surrounding the dot-com bubble. Unfortunately, during that time, the potential for profit has also led to fraud, fraud and financial ruin. However, the opposite is also true. A bear market makes people less willing to let go of their money. That means it’s less likely that these “projects” will actually take off. Macroeconomic conditions and the rising cost of living will only amplify this impact, and law enforcement actions against blockchain-based criminals and advances in chain analysis will keep bad guys up for sleepless nights. prize.
It remains to be seen if the future of cryptocurrencies will simply leave space for a few high-impact cryptocurrencies, or if it’s a real field. Hopefully, the blockchain space is ready for rehab.