2 - 3 minute read
The number of cryptocurrencies on the market has exploded in recent years, with over 22,000 currently listed on CoinMarketCap. But while the cryptocurrency market may seem oversaturated, the reality is that many of these coins will not survive the “crypto winter” and will eventually be delisted. In fact, more than 8,000 cryptocurrencies were listed on CoinGecko during the 2021 bull market, and nearly 40% of them have since been delisted.
So why are there so many cryptocurrencies in existence? One reason is that each project aims to address a specific problem or purpose. For example, Bitcoin was created to provide a decentralized peer-to-peer money transfer system, while other cryptocurrencies may focus on privacy, smart contracts, or other features. However, it is worth noting that many of these projects are highly speculative and are driven more by the desire to make a quick profit rather than any real value or utility.
This oversaturation of the market has led to what is known as the “crypto graveyard,” where hundreds of dead or dying cryptocurrencies are buried. In 2022, the number of “dead” cryptocurrencies dropped by 300% compared to the previous year, despite the overall crash of the crypto market. This trend is likely to continue, as only the strongest and most viable projects will survive in the long term.
One important piece of advice for investors is to do their own research (DYOR) before investing in any cryptocurrency. It is essential to thoroughly evaluate the project and its potential for success, as well as the risks involved. While some investors may be tempted by the hype and promise of quick profits, it is important to remember that the cryptocurrency market is highly volatile and that many projects will ultimately fail.
Finally, the cryptocurrency market is constantly evolving and it is important for investors to be aware of the risks and to do their due diligence before investing. While the market may seem oversaturated with thousands of different coins, it is likely that only a small fraction of them will survive in the long run. “DYOR” remains an important piece of advice for investors looking to enter the crypto market.