In the past few years, crypto markets have experienced a dizzying ride, with 10,400 projects reaching an all-time high just one year ago. Unfortunately for many cryptos, though, the crypto winter has caused their numbers to drop drastically. So much so that now there are over 1,700 dead coins, according to 99 Bitcoins’ data on poor online presence and lack of listings on major exchanges. As more and more tokens fail each day due to low trading volumes or other factors, it is becoming apparent that only those digital assets which can navigate this uncertain period will emerge as long-term survivors in the future.
75% of the Market Share in the Crypto Market Belongs to 5 Cryptocurrencies
Despite the continuing rise in traction and adoption of cryptocurrency and blockchain technology, the market conditions over 2022 caused a tumultuous crypto winter that brought about the demise of multiple projects. Just this year alone, since February 14th, we have seen an alarming decrease of 1,700 cryptocurrencies… leaving us with only 8,704 remaining.
Boasting a collective market value of over one trillion dollars, 8,000 unique coins have been created- yet only five are responsible for 75% of that sum. Last week those currencies accounted for an astonishing $809 billion in worth alone! This begs the question regarding other projects, such as lesser-known tokens that emerged during the bull run – what is their individual and combined contribution?
Bitcoin (BTC) reigns supreme, accounting for an impressive 41.60% of the total market capitalization value globally – a stunning $443 billion! Following close behind is Ethereum’s (ETH) market cap at around $190 billion which takes up another 18.80%. The subsequent three cryptos, namely Tether (USDT), Binance Coin (BNB), and USD Coin (USDC), also contribute significantly with their combined 15%, adding up to approximately $161.8 billion in terms of global crypto markets values.
A spokesperson for BitcoinCasinos commented: “Analysis demonstrates that the number of digital coins in circulation among cryptos decreased to around 10,000 by August before the crypto winter unleashed a significant drop into bearish territory. This week witnessed fewer than 8,700 cryptocurrencies available on the market – lower even than 2021 levels.”
So, What’s Causing This Crypto Winter?
As numerous governments worldwide began to recognize and seek to address the imminent risks associated with cryptocurrencies, such as money laundering and terrorism financing, cryptocurrency numbers took a dive. Furthermore, due to the lengthy crypto winter that caused crypto markets to plummet further still, some projects lacked sufficient financial resources or investor backing, while others foundered in their attempt to retain users’ involvement. Consequently, this has resulted in a massive decline in many pre-existing digital currencies.
Despite the short-term volatility, the crypto market thrives and continues evolving. Although there are fewer projects than before, many of them remain successful. This digital marketplace will likely become more sophisticated in time as new initiatives continue to surface. So don’t let recent trends discourage you – investing in cryptocurrencies can still be smart for those willing to ride out some turbulence!
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