‘85% Of All Cryptocurrencies Are Worth Less Than A Cent’
By Jastra Kranjec
LAGOS OCTOBER 7TH (NEWSRANGERS)-Ever since the crypto boom in early 2022, the total number of cryptocurrencies has been floating between 8,500 and 10,000, with new tokens being launched every time a bull run in the crypto space starts.
The same thing happened in 2024 when the total number of cryptos jumped by 1,000 in the first six months of the year. Although this figure slightly dropped over the past few months, the total number of cryptos remains at a high of 9,861. However, most of them have little or practically no value.
According to data presented by AltIndex.com, 85% of all cryptocurrencies circulating in the market are worth less than one cent.
Crypto Space is Filled with Largely Worthless Coins
Thanks to the rise of blockchain technology, practically anyone anywhere can launch a new cryptocurrency today. The ease of creation and market entry with minimal technical effort, combined with the rise of Initial Coin Offerings (ICOs), speculation, and hype, has created an environment where thousands of new cryptocurrencies can be launched. Although many investors hope to discover or create the next Bitcoin or Ethereum, many of these projects have little long-term value, filling the market with worthless coins that may eventually disappear. However, their share in the crypto space is enormous.
According to AltIndex analysis of Investing.com data, which tracks the number of crypto coins, although the number of cryptocurrencies dropped over the past three months, it still stands at 9,861, the fifth largest number in the market`s history. However, most of them have little or practically no value.
The AltIndex analysis showed 9,525, or 96% of all coins circulating in the crypto space, are worth less than a dollar. A deeper insight shows only 131 coins were valued between 50 cents and one US dollar as of last week. Around 400 had a price tag between fifty and ten cents, and another 548 were valued between one and ten cents. That means a shocking 8,443 coins, or 85% of all cryptocurrencies, are worth less than a cent. Many were launched during the cryptocurrency boom, often riding on hype without delivering a meaningful product or service.
Top Five Cryptocurrencies Now Make 82% of Total Market Value
Although there are thousands of available cryptocurrencies in the market, only a handful dominate market share and usage. The CoinMarketCap data show the world`s top five cryptocurrencies now make up 82% of the total crypto market cap, with a combined value of $1.78 trillion as of last week. The world`s largest and most expensive crypto, Bitcoin, accounts for 56% of the global crypto market cap, up from 48% a year ago.
On the other hand, Ethereum makes roughly 12% of the total crypto market cap, 7% less than last year. Together, the next three cryptos by market cap, Tether, BNB, and Solana, make 12% of the global crypto market value, with a combined market cap of $269 billion as of last week.
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Posted by News Rangers
on Oct 7 2024. Filed under Business, National.
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