As of early April 2024, over 540,000 new tokens have been created, with an average of 5,300 new tokens being added each day. As the market saturation continues to rise, filtering out altcoins becomes crucial.
(Previous Summary:
Altcoin Investment Methodology: Abandoning Emotional Drives, Formulating Theme Strategies
)
(Background Supplement:
Operational Experience: 4 Key Techniques for Trading Altcoins
)
Table of Contents
How Many Cryptocurrencies Are There?
Number of New Tokens
Meme Coin Seasonality
What Drives This Saturation?
How to Find Direction in a Saturated Market?
Do Not Get Too Attached to the Tokens You Hold
Final Thoughts
The saturation of altcoins has reached unprecedented levels. But how severe is it exactly? I read CoinGecko’s latest report to find answers. “In the ocean of opportunities, investors crave high returns.”
By 2024, there are already over 2.5 million cryptocurrencies, a 5.7-fold increase from the 440,000 in 2021. By the end of 2022, this number reached 1.15 million, a 159.2% year-on-year growth. By the end of 2023, it further increased to 1.98 million, a 72.3% year-on-year growth.
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As of early April 2024, over 540,000 new tokens have been created, with an average of 5,300 new tokens being created each day. Since 2023, this ratio has exceeded half of the 830,000 new tokens.
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May 2023 set a record with 104,000 token releases, but March 2024 reached a new high with 196,000.
These surges highlight the activity in the Meme market, where thematic and derivative tokens emerge rapidly.
(@GiganticRebirth)
Believes that one potential reason is the imitation of successful projects. In this rapidly evolving industry, success breeds imitation, leading to the rapid creation of numerous derivatives, chasing higher returns.
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As saturation rises, filtering out altcoins becomes crucial. It is increasingly challenging to find quality projects in the complex market on a weekly basis.
(@0x_Kun)
Proposed 5 criteria:
Macro narrative
Increasing user base
Strong community
Low unit bias
Clear value proposition
Winning the selection does not guarantee success. Many people lose profits due to being too attached to the tokens they hold. Between 2020 and 2021, 70% of the listed 11,000 tokens failed. Similarly, between 2017 and 2018, 70% of the over 3,000 tokens failed.
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Despite the rapidly saturating market, opportunities still exist for smart and hardworking individuals.
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