Recent data show that nearly 5,000 new digital currencies have been launched in the last 12 months. This jump is the largest annual growth in the number of digital currencies since the advent of bitcoin.
to the Report Crypto Potito In the last 12 months, and at the same time with the increasing interest of institutional investors in the field of digital currency, about 5,000 new tokens have been introduced in the market, which means that an average of 10 digital currencies have been created daily.
As can be seen on the front page of the CoinMarketCap website, the number of digital currencies on the market has recently exceeded 12,000. In September last year, the total number of digital currencies was estimated at 7,100; This means that at least 4,900 new digital currencies have been launched in the last 12 months.
This jump is the largest annual growth in the number of digital currencies since the advent of bitcoin. In addition, the market value of digital currencies has reached $ 2 trillion during this period.
The rise in interest in developing new digital currencies has been largely due to the rise in bitcoin prices over the past year, as well as increased institutional investor participation.
Figures such as Elon Musk and Jack Dorsey have shown their support for the industry and the capabilities of digital currency, and this could bring more creativity and capital to the digital currency market.
It boosts capital inflows and market creativity, and encourages developers to work on their digital currencies to take advantage of market opportunities and demand.
In addition, digital currencies have become popular among investors as a shield against inflation, thanks to their anti-inflationary structure, especially during the economic crisis caused by the Corona epidemic. Although we saw a sharp fall in the stock market in September 2020, digital currencies largely retained their value. This may have prompted more developers to create new digital currencies and invest in this asset class.
Is the release of new tokens a positive development?
Increasing the popularity and development of technology is important for the growth of the digital currency industry, however, increasing the number of tokens may have the opposite effect or even be dangerous.
For example, Gary Gensler, chairman of the US Securities and Exchange Commission, is pessimistic about the large number of tokens available. Assuming that there is no room for thousands of different currencies, Gansler intends to design a legal framework for the industry to protect investors so that no one is harmed by the sudden drop in the price of some of these tokens.
Some digital currency market tokens are still a dangerous investment option if not scams. In the first half of 2021 alone, Australians lost $ 25 million in digital currency-related scams.