The world of cryptocurrencies has seemingly gone on a massive diet through this bear market, as the number of active tokens has decreased by almost 1,000 – the biggest-ever annual decline, according to Statista. The reduction brought the number of active cryptocurrencies from its 2021 high of 10,397 down to a (still) overwhelming 9,310. Of course, there’s more to the cryptocurrency world than Ethereum and Bitcoin; but that doesn’t mean all projects are worthy of attention.
2022 has been a challenging year for the cryptocurrency space. The entire market has been shaken to its core following the high-profile implosion of FTX (whose pieces are still being picked up) in a year of severe economic uncertainty. As a result, fear, uncertainty and doubt regarding the space are at an all-time high. This led the crypto market’s capitalization to shrink by an astonishing 72% decline from its November 2021 high of $3 trillion to today’s $850 billion.
It’s interesting to note the explosion in the number of tradeable tokens from November 2021 through January 2022, which saw a jump of around 2,400 up to its 10,397 maximum. When the grass is green, everyone wants to set camp; the bull market exacerbated confidence and greed flourished. It’s no coincidence that so many tokens, each with their own “project,” launched while cryptocurrency prices were at their all-time highs. The decline in the number of tokens can mainly be attributed to one of two things: the token project failed to survive the crypto winter, following a marked reduction in investment volume from both users and entities; or it was merely a scam/rug pull coin that never meant to bridge any gaps between today and tomorrow.
Coingecko, which uses a different analysis method than Statista’s source (CoinMarketCap), paints a much more explosive picture. It estimates 8,000 launched…
