By leveraging a web archive tool, Finbold has determined that from the start of the year, the cryptocurrency market has added 3,555 new digital assets. As of January 1, the number of coin and tokens stood at 16,238, growing by 217% to 19,793 by June 9, according to CoinMarketCap data.
Based on this data, an average of 22 cryptocurrencies entered the market daily in 2022.
Although the cryptocurrency market is undergoing turbulent times, there is still a perception that the sector will embark on a bullish run in the near future. In this line, it can be assumed the new projects entering the market are betting to benefit from a potential rally.
New cryptocurrencies builds on 2021 momentum
The new addition also builds on the momentum established in 2021 when the entire crypto market was mainly on a bull run. According to the report, at least 8,000 new crypto assets were added between January 1 and December 31, 2021, a growth of 98.98% from the previous year.
Most of the assets aim to emulate the path of established cryptocurrencies like Bitcoin and Ethereum.
However, the lack of clear crypto regulations has also resulted in scammers taking advantage of the market by launching new projects to defraud unsuspecting investors.
In general, the newly added cryptocurrencies represent the sector’s growth over the last few years. This is highlighted by the fact that in 2013 at the launch of CoinMarketCap, there were only 14 cryptocurrencies listed on the platform. At that point, Bitcoin was trading slightly above $100.
Besides Bitcoin, early cryptocurrencies added to the platform include Litcoin and Terracoin from the recently collapsed Terra (LUNA) ecosystem.
From the growth trajectory, the number of new assets joining the market will likely keep surging. However, it remains uncertain if all the tokens will survive, considering that analysts have maintained that once the market establishes itself, some coins will fall off.