The total number of crypto tokens is growing
... but can the market absorb them?
Ever since Bitcoin recovered it's price at the start of the year, a shedload of new shitcoins have launched, hoping to replicate the altcoin bonanza of 2021. Here is the table:
There are 5.7 times the amount of altcoins available in 2024 as there were in 2021 at the peak of the last bull run.
But there isn't 5.7 times the money pouring into crypto. Retail investors, clobbered by inflation and interest rates, don't have spare cash to invest.
So we have a situation of increased supply of tokens all competing for limited demand for alts. Which is why the overall altcoin market has gone nowhere.
This vast printing of new tokens is no different to a central bank printing extra notes.
Some of these coins/tokens need to die. Perhaps the South Korean regulators have the right idea in forcing exchanges to delist the worst coins.
In the meanwhile, my gloomy conclusion is that the alt market will go nowhere till the number of tokens shrink. Which might take a long time.