Crypto market adds over 700 new coins in Q3 so far despite volatility
The crypto market has been characterized by significant volatility in 2022, a factor that would likely affect new projects joining the market. However, this is not the case, as developers are trying to gain a share of the market by launching new coins.
Specifically, as of August 15, the number of cryptocurrencies tracked by CoinMarketCap was 20,575. By implementing a web archive tool, Finbold has determined that the number represents a growth of 709 new digital assets or a 3.5% increase from the 19,866 recorded on June 15.
The market offers smaller gains
The growth comes as the general market attempts to maneuver the crypto winter period that has dominated the first half of 2022. Especially after a turbulent start to the year, the general crypto market has embarked on a short-term rally led by Bitcoin (BTC) and Ethereum (ETH).
For example, after being threatened to correct further below $20,000, Bitcoin has recorded minor gains targeting the $30,000 level after topping $25,000 on August 14.
Elsewhere, Ethereum is among the biggest winners after maintaining bullish momentum fueled by the upcoming Merge upgrade that will transition the blockchain to a Proof-of-Stake (PoS) mechanism. At the same time, Ethereum continues to provide an underlying technology upon 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 another rally in the second half of the year. Consequently, it can be assumed that the rise of new cryptocurrencies is inspired by the possibility that the market may rally again.
Entities unveiling new assets hope to make money, considering that cryptocurrencies are known to generate significant profits in a short period of time despite their volatility.
New assets despite crypto crash
Interestingly, new cryptocurrencies have also emerged despite established ecosystems such as Terra (LUNA) crumbling. It’s worth noting that the infatuation with Terra has cast doubt on the long-term sustainability of the thousands of existing digital assets.
The doubt is consistent with the consensus that most current coins will fade as the market matures. In addition, the sustainability of the assets will depend on their specific utility value.
The new assets have also increased due to the increased regulatory scrutiny globally. However, no strict rules have been implemented to curb the launch of new cryptocurrencies since they do not require a lengthy regulatory process like stock listing.
On the other hand, lack of regulation also drives the introduction of fraud into the market with bad actors attempting to exploit unsuspecting users.
