Summary of key points

  1. Bubble-like growth in the number of altcoins in 2024 and the risks it brings.

  2. The number of users participating in Tap-to-Earn games will surge in 2024.

  3. Nvidia (NVDA) Stock’s Hot Growth in 2024 and Signs of a Bubble.

Image source: BeInCrypto

From 2023 to 2024, the overall market value of the Crypto market did not show rapid parabolic growth, and it has not even returned to the historical high in 2021. These growth bubble predictions are not for the crypto market, but for other data and objects that have a significant impact on the crypto market.

What follows is a summary and assessment of these growth phenomena.

1. The growth of the number of altcoins in 2024 and the risks that come with it

Although the market capitalization has not yet returned to its peak, the number of altcoins and new projects has long since exceeded its peak and has increased many times compared to previous cycles. This has caused the market to fall into a situation of "less land, more people", with too many projects eating an increasingly smaller market value cake.

Image source: BeInCrypto

  • As of April 2024, there were more than 2.5 million tokens on the market, compared with 1.98 million in 2023, according to CoinGecko Research. This means that in less than half a year of 2024, more than 500,000 tokens have been created. CoinGecko says an average of 5,300 new tokens are created every day.

  • At the same time, market trading volumes have tapered off and market capitalization has not returned to its 2021 highs. Recently, Binance took the unprecedented step of launching an early warning feature to alert users of which tokens may be delisted. This is because there are too many coins on the market but very little liquidity.

The number of tokens with illiquidity and low trading volume is expected to increase in the near future. Many tokens and altcoins will be delisted, and investors will need to re-examine their portfolios and reallocate funds to truly high-quality tokens.

2. The number of users participating in Tap-to-Earn games will surge in 2024

Since early 2024, various Tap-to-Earn (tap the screen to earn points) game applications on Telegram have caused a craze in the community.

  • Hamster Kombat announced that as of June, their number of users has reached 200 million, making it the most used Tap-to-Earn application.

  • Tapswap announced that they have reached 55 million global players and 18 million daily active users.

  • Yescoin also announced that in just over a month, they reached 18 million users, with more than 6 million of them connecting their wallets.

All of these projects have high hopes that they will become the next “Notcoin.” But the question is, how to provide sufficient liquidity for hundreds of millions of users? Will user growth continue? At the same time, many experts believe that the crypto market in 2024 will lack the inflows from retail investors who were strong growth drivers in previous cycles.

It is expected that the popularity of these mini-app users on Telegram will cool down or reach saturation in the second half of 2024, with altcoin market capitalization recently falling below $100 billion.

3. NVDA stock is growing rapidly in 2024 and showing signs of a bubble

NVDA stock is a major representative of the so-called "AI stock" wave in 2024. In the recent case of Apple stock, AAPL's market capitalization increased by $600 billion as the company entered the AI ​​market through a partnership with OpenAI. The market value of NVDA has increased by nearly 900% in the past two years, surpassing Google and Amazon, becoming the world's top 4 assets in market value (after gold, Microsoft, and Apple).

The British "Financial Times" believes that this phenomenon is a sign of the growth of a bubble. When investors overestimate the potential of something and have high hopes for it, a bubble will form. It’s unclear what the impact of the AI ​​bubble would be if it burst, but the positive correlation between U.S. stocks and Bitcoin suggests it could severely impact the overall crypto market.

[Disclaimer] There are risks in the market, so investment needs to be cautious. This article does not constitute investment advice, and users should consider whether any opinions, views or conclusions contained in this article are appropriate for their particular circumstances. Invest accordingly and do so at your own risk.

  • This article is reprinted with permission from: "Deep Wave TechFlow"

  • Original article by: Viet Anh, BeInCrypto