Home Technology Crypto Market Adds Over 700 New Coins So Far in Q3 Despite Volatility

Crypto Market Adds Over 700 New Coins So Far in Q3 Despite Volatility

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Crypto Market Adds Over 700 New Coins So Far in Q3 Despite Volatility

The crypto market was characterized by high volatility in 2022, a factor likely to impact new projects entering the market. However, this is not the case as the developers are trying to get a share of the market by releasing new coins.

In particular, as of August 15, the number of cryptocurrencies tracked by CoinMarketCap stood at 20,575. By deploying a web archiving toolFinbold determined that the figure represents growth of 709 new digital assets or a 3.5% increase from the 19,866 recorded on June 15.

The total number of digital assets, August 15, 2022. Source: CoinMarketCap/Wayback Machine

The market makes minor gains

The growth comes as the general market attempts to maneuver the crypto winter period that dominated the first half of 2022. Notably, after a turbulent start to the year, the general crypto market embarked on a short-term rally. term led by Bitcoin (BTC) and Ethereum (ETH).

For example, after being threatened with further correction below $20,000, Bitcoin saw minor gains targeting the $30,000 level after breaking above $25,000 on August 14.

Elsewhere, Ethereum ranks among the biggest gainers after backing a bullish the momentum fueled by the next Merge Upgrade which will make the transition from the blockchain to a Proof-of-Stake (point of sale) mechanism. At the same time, Ethereum continues to offer underlying technology on which new digital assets can be built.

The gains have prompted several analysts to suggest that the market has bottomed out and there is a possibility of a further rally in the second half. Therefore, it can be assumed that the emergence of new cryptocurrencies is inspired by the possibility of a market recovery.

Entities unveiling new assets hope to profit from them, given that cryptocurrencies are known to generate large profits in a short period of time despite their volatility.

New assets despite the crypto crash

Interestingly, new cryptocurrencies have also emerged despite the collapse of established ecosystems like Terra (LUNA). It should be noted that the Terra crash cast doubt on the long-term sustainability of thousands of existing digital assets.

The doubts align with the consensus that most current coins will disappear as the market matures. Moreover, the durability of the asset will depend on its specific utility.

New assets have also increased amid heightened regulatory scrutiny globally. However, no strict regulations have been implemented to curb the launch of new cryptocurrencies as they do not require a lengthy regulatory process like the listing. actions.

On the other hand, lack of regulation also leads to scams entering the market with bad actors trying to take advantage of unsuspecting users.

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