Despite the crypto market currently experiencing a downturn, over 5,000 new cryptocurrencies have been introduced this year, according to data from CoinMarketCap.
The recent data shows 21,555 assets being monitored compared to 16,238 as of January 01, 2022. Investors added 5,317 new cryptocurrencies during the period, and the market translated that into a growth of 32%.
The addition of new cryptocurrencies shows positive sentiments in the industry and proves astonishing because the industry has faced a severe recession since the start of this year. Prices of all the coins fell, and the bearish trend resulted in a drop in market capitalization below $01 trillion in July 2022.
The market got stimulated by the listing of new digital assets, which partially confirms the idea that the present bearish trend may only be short-lived and that there is potential for a rally. Most new currencies want to follow the stablecoins like BTC’s momentum.
How New Cryptocurrencies Will Shake Up the Market
The lack of regulatory requirements encourages new entrants in the crypto space, which ultimately results in the surpassed entry of new tokens in publicly listed companies in the Americas. But adding new digital assets is not a guarantee of a successful venture; analysts recommend that only assets with robust utility are expected to emerge on the top.
The simple entrance requirements enabled scammers to provide new assets for user fraud. The market appears to be warming up to unique holdings due to the well-publicized collapse of the Terra (LUNA) ecosystem, which led to accusations of fraud against founder Do Kwon.
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The developers’ ultimate goal for a digital asset is to earn money and put it on the successful path of stablecoins like BTC, BNB, and other cryptocurrencies. Bitcoin has gained legal acceptance in El Salvador, and more than 15,000 businesses worldwide accept it as a payment mode. The mass adoption of a currency increases the profit of investors.
The entry of new cryptocurrencies into the space shows that the bearish market trend is temporary, and the developers may take the opportunity to earn profits. Furthermore, it’s conceivable that developers are utilizing the current bearish market trend to create projects that will be unveiled when the next cycle starts.