It seems astonishing how fast the crypto sector has started to grow in the past year. The recent data also show that it is very likely that this expansion is here to stay. In just the first month of 2022, the number of cryptocurrencies grew by 6.17%, as confirmed by Coinmarketcap.
The unprecedented boom started last year when the number of digital assets grew from 8,153 to an astonishing 16,223, jumping up 98.98% and almost doubling in number. In total, the overall 8,070 cryptocurrencies added in 2021 average on 21 new cryptos a day.
The year 2022 seems to be beating its predecessor already, after only one month. With 1,002 new cryptocurrencies added in just 31 days, the average daily number of new digital assets has climbed to 33, and the overall number of virtual currencies in circulation has surpassed 17,275. If this trend persists, the number will surpass last year’s record.
However, despite this unprecedented surge, the total market capitalization of all the crypto assets is lower than it was in December, due to the recent dip of Bitcoin, Ethereum, and others. With the top one hundred cryptocurrencies holding the most of the market value, it is not surprising that a surge in the number of crypto assets does not necessarily equal a surge in the market cap value.
The question withstands: Is this rapid growth positive news? With new cryptocurrencies popping up here and there, one might find it hard to make head or tail in the sheer number of them. On the other hand, more crypto means more exposure, which in turn leads to greater adoption. So, there are two sides to every digital coin as well.