The growth of the number of altcoins in 2024 and the risks that come with it
Although the market value has not returned to its peak, the number of altcoins and new projects has exceeded the peak and has increased many times over the previous cycle.
This has led to a situation where the market is in a "small land and many people" situation, with too many projects sharing a smaller and smaller market value pie.
According to data from Coingecko Research, as of April 2024, the number of tokens on the market has exceeded 2.5 million, compared with 1.98 million in 2023.
This means that in less than half a year in 2024, more than 500,000 tokens have been created. Coingecko said that an average of 5,300 new tokens are created every day.
At the same time, market trading volume has gradually decreased, and the market value has not returned to the highs of 2021.
Recently, Binance took the unprecedented step of launching an early warning function to remind users which tokens may be delisted. This is because there are too many coins on the market, but the liquidity is poor.
It is expected that the number of tokens with lack of liquidity and low trading volume will increase in the near future.
Many tokens/altcoins will be delisted, and everyone needs to re-examine their portfolios and reallocate funds to truly high-quality tokens.
In such a market environment, altcoins need to be extra cautious and pay close attention to market trends and regulatory policy changes. Only in this way can long-term and stable returns be obtained.
