AltIndex.com, a data analysis firm, revealed that approximately 85% of the world's cryptocurrencies are worth less than one cent. This staggering statistic underscores the volatility and unpredictability of the cryptocurrency market. The total number of cryptocurrencies currently in circulation hovers between 8,500 and 10,000, with new tokens being launched every time a bull run in the crypto space begins. At the time of the report, the total number of cryptocurrencies was at a high of 9,861. However, most of these have little or practically no value.
The report further showed that 9,525, or 96% of all coins circulating in the crypto space, are worth less than a dollar. Just 131 coins were valued between 50 cents and one US dollar. Around 400 had a price tag between 50 and 10 cents, and another 548 were valued between one and 10 cents. This means a shocking 8,443 coins, or 85% of all cryptocurrencies, are worth less than a cent. The proliferation of cryptocurrencies can be attributed to the rise of blockchain technology, which allows anyone to launch a new cryptocurrency. However, the majority of these cryptocurrencies are worth very little due to various factors, including a high number of new tokens being launched with each crypto market bull run, lack of unique value proposition, limited adoption, and intense competition.
Despite the majority of cryptocurrencies having little value, the top five cryptocurrencies now make up 82% of the total crypto market cap, with a combined value of $1.78 trillion. Bitcoin accounts for 56% of the global crypto market cap, up from 48% a year ago. Ethereum makes roughly 12% of the total crypto market cap, 7% less than last year. On the day of the report, Bitcoin price was hovering around $62,800, up 1.5%, and Ethereum was also up 1.3% at nearly $2,450. The cryptocurrency market has seen significant growth and volatility over the past decade. In 2017, the market experienced a boom with the launch of numerous cryptocurrencies. However, many of these new cryptocurrencies failed to gain significant value, leading to the current situation where a large percentage of them are worth less than a cent.
This trend is not unique to the cryptocurrency market. In the late 1990s and early 2000s, the dot-com bubble saw a similar trend with internet companies. Many new internet companies were launched with high expectations, but a large number of them failed to generate significant revenue and eventually went bankrupt. Looking forward, the cryptocurrency market is expected to continue its volatile trend. Some experts predict that Bitcoin, the largest and most well-known cryptocurrency, could reach a staggering $90,000 by the end of 2024. However, these predictions should be taken with a grain of salt as the cryptocurrency market is highly unpredictable and influenced by a wide range of factors, including regulatory changes, technological advancements, and market sentiment.
While the cryptocurrency market offers significant opportunities for high returns, it also carries substantial risks. The majority of cryptocurrencies are worth very little, and the market is highly volatile. Therefore, potential investors should conduct thorough research and consider their risk tolerance before investing in cryptocurrencies. It's crucial to remember that while the potential for high returns exists, so does the potential for significant losses. As with any investment, due diligence and careful consideration are key.
