Nearly 4,900 New Cryptocurrencies Entered Market Since September 2020: Report

A cursory glance at data reveals that it's not just the value of cryptocurrencies but also their numbers that's seen massive growth.

By Edited by Gadgets 360 Newsdesk | Updated: 27 September 2021 11:23 IST

Nearly 4,900 New Cryptocurrencies Entered Market Since September 2020: Report

Cryptocurrency combined market cap is currently over $2 trillion

Highlights

Crypto market grew during the pandemic
The total number of crypto coins jumped from 7,100 to 12,000 in a year
The growth is fuelled by growing acceptance and celebrity endorsements

The pandemic hit the economy real hard but one thing that has witnessed an unparalleled boom during the same period is cryptocurrencies. Bitcoin, the world's biggest cryptocurrency token, crossed the $60,000-mark (roughly Rs. 42 lakhs) in April 2021, while Dogecoin, which started as a meme, has also captured everyone's imagination. However, there's more to this story. A cursory glance at data reveals that it's not just the value of cryptocurrencies but also their numbers that have seen massive growth.

According to a report on cryptopotato.com citing CoinMarketCap data, there are more than 12,000 crypto tokens in the market for cryptocurrency enthusiasts to choose from and invest in. Not to forget, the number of companies accepting crypto tokens as a mode of payment is also steadily, if not rapidly, increasing.

Speaking of the spike witnessed from September 2020 to September 2021, around 4,900 more cryptocurrencies are now available compared to last year. In September 2020, there were approximately 7,100 coins in the market. A year later, that number has risen to over 12,000. There are two primary reasons for such massive growth in not just the value but also the volume of cryptocurrencies.

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The growing acceptance of crypto tokens among institutions and the Bitcoin boom were instrumental in driving people and other stakeholders towards the market that now has a total cap of over $2 trillion.

Among other reasons, experts see big names such as Tesla founder Elon Musk and Twitter boss Jack Dorsey's endorsement of cryptocurrency as extremely crucial for instilling confidence.

The next question for many is whether the massive spike in the number of these tokens is a good thing. More tokens also correspond to a higher possibility of scams. Just last month, cryptocurrencies worth $22.2 million (roughly Rs. 165 crores) were seized by the UK police after a global fraud scheme was unearthed. The ones who fell prey to the scam were spread across the world.

Cryptopotato also reported that over $25 million (roughly Rs. 184 crores) were lost to crypto scams among Australians only in the first half of 2021.

Interested in cryptocurrency? We discuss all things crypto with WazirX CEO Nischal Shetty and WeekendInvesting founder Alok Jain on Orbital, the Gadgets 360 podcast. Orbital is available on Apple Podcasts, Google Podcasts, Spotify, Amazon Music and wherever you get your podcasts.

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