The cryptocurrency sector is still growing, attracting more investors aiming to leverage various benefits of the industry.
Additionally, the number of new cryptocurrencies joining the market is also accelerating as creators seek to leverage the benefits of blockchain technology.
According to data acquired by cryptocurrency trading simulator Crypto Parrot, between September 2020 and September 2021, 4,908 new cryptocurrencies have launched, bringing the cumulative number of coins to 12,046. Therefore, over the last 12 months, the number of new cryptocurrencies has grown 68.75% from September 2020’s figure of 7,138.
The highest growth rate was recorded between September 2019 and September 2020 at 146.98%, from 2,890 to 7,138. During the period, 4,248 cryptocurrencies were added. Elsewhere, the growth rate of new cryptocurrency launches between September 2018 and September 2019 was 46.18%, from 1,977 to 2,890. In 2017, the number of coins was 1,121.
Crypto growth in value drives new coins joining market
The report highlights some of the factors driving the growth of new cryptocurrencies in the last 12 months. According to the research report:
“The sector has surged in value at one point, hitting a cumulative market capitalization of about $2 trillion. The popularity spiked as digital currencies entered into the mainstream, backed by institutional investors. Notably, the entry of institutions is partly contributing to the sector’s maturity, and creators of new coins don’t want to miss out on the opportunity for more returns.”
In general, worth mentioning is that the emergence of new cryptocurrencies does not necessarily translate to success. Notably, some coins unusually fade out as the public shun them.
However, tokens likely to survive are those with real-world use cases and focused on mainstream adoption.
