What crypto crash? 2022 shows over 5,000 new cryptos
Crypto developers seemed unaffected by the bearish momentum that has plagued the industry this year.
Rational thinking would suggest that the current state of the cryptocurrency market would discourage new entrants from joining right now, as they might risk feeling the brunt of the space’s continued decline.
But more recent data from CoinMarketCap would say something else, like 5,317 new digital currencies was launched in 2022.
This pushed the total number of assets monitored by the most referenced crypto price tracking website to 21,555 – 32% higher than the 16,238 number back on January 1.
Such a development comes as a surprise as the crypto market plunged so badly this year that its total market capitalization fell below $1 trillion in July. Over the past few days, however, this milestone territory was reclaimed through the collective rally of most, if not all, virtual currencies.
Why developers continue to create cryptocurrencies
The long and short of it is that developers count on these asset types that they create and introduce to make money. But as simple as it may sound, it is more to that.
These new digital currencies are most likely out there to try and replicate the success of the maiden crypto, Bitcoin.
Image: Jeffrey Hancock/Medium
The largest cryptocurrency by market capitalization traded at $20,699 as tracked by Coingecko at the time of writing, has achieved much as the sector evolves.
Bitcoin has been adopted as legal tender in El Salvador and is accepted by more than 15,000 businesses across different parts of the world as a form of payment.
This level of mass adoption is a major contributing factor to BTC price increases which in turn bring profits to holders and investors.
What does this mean for the crypto space?
Historically, the emergence of new cryptocurrencies is inspired by an ongoing or recently ended bullish run, as developers do not want to miss the opportunity to make more money.
This year, however, the market seems to have run out of gas and is unable to push itself into an uptrend. Instead, it has fallen into a bearish streak that made even the frontrunners – Bitcoin and Ethereum – bleed for so many days.
With the addition of more than 5,000 new digital assets in the space, experts believe the thesis that the bear market is temporary and a major rally is still possible is being reinforced.
Moreover, it is also possible that developers will take advantage of this downward momentum to build other projects that will be introduced when the next bull cycle comes.
Crypto total market cap at $966 billion on the weekend chart | Featured image from Futurist Thomas Frey, Chart: TradingView.com
