Rapid Growth In Cryptocurrency Market: A Detailed Analysis

According to PANews, the saturation level of the cryptocurrency market has skyrocketed. The latest report from CoinGecko was analyzed to understand the severity of this situation. The report reveals that investors are eager to achieve high returns in this ocean of opportunities. By 2024, there were over 2.5 million cryptocurrencies, a 5.7-fold increase from 440,000 in 2021. By the end of 2022, this number reached 1.15 million, a year-on-year increase of 159.2%. By the end of 2023, this number further increased to 1.98 million, a year-on-year increase of 72.3%. As of early April 2024, over 540,000 new tokens had been created, with an average of 5,300 created every day. From 2023 onwards, this rate exceeded half of the 830,000 new tokens. The Meme coin market showed a seasonal effect. May 2023 saw a record issuance of 104k tokens, but March 2024 set a new record with 196k. This surge highlighted the activity level of the Meme market, where thematic and derivative tokens quickly emerged. One potential reason for this saturation, as suggested by GCR, is the imitation of successful projects. In this rapidly developing industry, success breeds imitation, leading to a large number of derivatives being quickly created in pursuit of higher returns. As the market becomes more saturated, filtering out counterfeit coins becomes crucial. Each week, finding quality projects in the complex market becomes increasingly difficult. Five criteria were proposed by @0x_Kun: grand narrative, increasing user base, strong community, low unit bias, and clear value. Winning the choice does not guarantee success. Many people lost profits due to being overly attached to the tokens they held. During 2020-2021, 70% of the 11,000 tokens listed failed. Similarly, during 2017-2018, 70% of over 3,000 tokens failed. Despite the rapid market saturation, opportunities still exist for those who are smart and work hard.