Almost 5,000 tokens were born in the past 12 months, an average of 10 new coins per day
New data shows that during a period of intense corporate and institutional interest in the crypto industry, nearly 5,000 new tokens have been created in the past 12 months, which is an average of more than 10 new coins per day.
Cryptocurrencies are like sand in the desert
As can be seen on the CoinMarketCap homepage, the number of existing cryptocurrencies last exceeded 12,000, while the site only recorded around 7,100 coins in September last year, which means at least 4,900 technical assets. New numbers have only been generated in the last 12 months .
This is a massive year-on-year increase in the absolute number of cryptocurrencies since Bitcoin was born. During that time, the total capitalization of the digital asset industry passed the $ 2 trillion mark.
Interest in creating cryptocurrencies has been mainly driven by the rise in the price of Bitcoin over the past year, as well as the growing involvement of institutions in the field.
As household names like Elon Musk and Jack Dorsey show their support for the industry and its opportunities, financial interests and intelligence continue to pour into the room. This continues to drive the market and inspire developers to work on their own cryptocurrencies so as not to miss out on potential gains and demand.
In addition, cryptocurrencies as a hedge against inflation – especially during the economic crisis triggered by the coronavirus pandemic – have attracted a great deal of interest. While the stock market collapsed in September 2020, the cryptocurrencies have largely stayed the same. This may have inspired even more creators to invest in and grow the emerging asset class.
Is that good for crypto?
As interest grows and technological developments are critical to the growth of the cryptocurrency industry, the growing number of coins can be counterproductive or even dangerous.
For example, SEC chairman Gary Gensler will become increasingly skeptical of the space given the large number of tokens in existence. Recognizing that there is no room for thousands of different currencies, he intends to step up regulation of the industry to protect investors before some of those currencies inevitably collapse.
In fact, many tokens appear to be dangerous investments – if not scams. In the Australian crypto market alone, more than $ 25 million went to fraudsters in the first half of 2021.
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According to Cryptopotato