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1,000 Cryptocurrency Tokens Met Their Demise in 2022

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.

Cryptocurrency bull and bear markets correlate with the number of tokens launched and destroyed in the blockchain space. (Image credit: Statista)

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.

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