Cryptocurrencies In Circulation Grow By 5,000 In 12 Months
The number of cryptocurrencies in circulation has grown by 4,908 in one year, bringing the cumulative number of coins to 12,046 and indicating 68.75 per cent over September 2020’s figure of 7,138.
Data by Crypto Parrot, a Cryptocurrency Trading Simulator, shows that the highest growth rate was recorded between September 2019 and September 2020 at 146.98%, from 2,890 to 7,138. During the period, 4,248 cryptocurrencies were added. Elsewhere, the growth rate of new cryptocurrency launches between September 2018 and September 2019 was 46.18%, from 1,977 to 2,890. In 2017, the number of coins was 1,121.
The development indicates that the growth of crypto value is driving the launch of new coins into the market which has attracted more investors aiming to leverage various benefits of the industry. Additionally, the number of new cryptocurrencies joining the market is also accelerating as creators seek to leverage the benefits of blockchain technology.
The report by Crypto Parrot highlights some of the factors driving the growth of new cryptocurrencies in the last 12 months which include the growth of the market capitalisation to about $2 trillion.
“The sector has surged in value at one point, hitting a cumulative market capitalization of about $2 trillion. The popularity spiked as digital currencies entered into the mainstream, backed by institutional investors. Notably, the entry of institutions is partly contributing to the sector’s maturity, and creators of new coins don’t want to miss out on the opportunity for more returns”, Crypto Parrot noted in its research report.
It however noted that the emergence of new cryptocurrencies does not necessarily translate to success as some coins unusually fade out as the public shun them.
“However, tokens likely to survive are those with real-world use cases and focused on mainstream
