1,000 Cryptocurrency Tokens Met Their Demise in 2022

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The world of cryptocurrencies has seemingly gone on a large food plan by way of this bear market, because the variety of energetic tokens has decreased by virtually 1,000 – the biggest-ever annual decline, in line with Statista. The discount introduced the variety of energetic cryptocurrencies from its 2021 excessive of 10,397 right down to a (nonetheless) overwhelming 9,310. After all, there’s extra to the cryptocurrency world than Ethereum and Bitcoin; however that does not imply all initiatives are worthy of consideration. 

2022 has been a difficult yr for the cryptocurrency area. Your entire market has been shaken to its core following the high-profile implosion of FTX (whose items are nonetheless being picked up) in a yr of extreme financial uncertainty. Consequently, worry, uncertainty and doubt relating to the area are at an all-time excessive. This led the crypto market’s capitalization to shrink by an astonishing 72% decline from its November 2021 excessive of $3 trillion to as we speak’s $850 billion.

Crypto’s bull and bear markets are correlated with the quantity tokens launching – and dying – within the blockchain area. (Picture credit score: Statista)

It is fascinating to notice the explosion within the variety of tradeable tokens from November 2021 by way of January 2022, which noticed a leap of round 2,400 as much as its 10,397 most. When the grass is inexperienced, everybody desires to set camp; the bull market exacerbated confidence and greed flourished. It is no coincidence that so many tokens, every with their very own “venture,” launched whereas cryptocurrency costs had been at their all-time highs. The decline within the variety of tokens can primarily be attributed to considered one of two issues: the token venture didn’t survive the crypto winter, following a marked discount in funding quantity from each customers and entities; or it was merely a rip-off/rug pull coin that by no means meant to bridge any gaps between as we speak and tomorrow.

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