It Seems That With The Sharp Fall In The Value Of The Cryptocurrency Market, We Are Witnessing The Destruction Of A Large Number Of Projects Related To This Field. This Year Alone, About 1,000 Tokens Said Goodbye To This Market Forever, Which, According To Statista, Is The Largest Annual Decline Rate In This Field.

It has been the market. The cessation of activities of many cryptographic projects caused the number of cryptocurrencies to decrease from 10,397 in 2021 to 9,310.

In the world of digital currencies, there are many projects based on Ethereum and Bitcoin; But not all of them are worth attention and investment.

2022 has been an exhausting year for the cryptocurrency market. This market has been shaken after the collapse of FTX, one of the world’s most popular decentralized cryptocurrency exchanges, and the lack of certainty in the global economy. As a result of fear, mistrust, and doubt in this area, it has reached more than expected.

 These conditions caused the total value of the cryptocurrency market to drop by a staggering 72%, from $3 trillion in November 2021 to $850 billion at the time of writing.

According to TomsHardware, tradable tokens increased from November 2021 to January 2022. The bull market increased the confidence of many small and large investors in the field of cryptocurrencies. It is unsurprising that with the value of tokens reaching the highest historical ceilings, we will see the launch of new projects in this space.

The decrease in the number of tokens mainly occurs for several reasons: either the project in question could not survive the crypto winter, or it happened due to a significant decrease in the investment volume of users and institutions. It should be noted that there is another reason, which is the fraud of some projects.

CoinGecko, which uses a different analysis method than CoinMarketCap, has presented a fascinating picture of the cryptocurrency market. The source estimated that out of the 8,000 tokens launched in 2021, only about 59% are active.

Crypto enthusiasts quickly compare cryptocurrency cycles to other influential technologies, such as the dot-com bubble events. Unfortunately, the greed for profit led to fraud and economic explosions at that time.

The conditions of the dot-com bubble are precisely what is happening in the field of cryptocurrencies. In contrast, as the market rises, all kinds of fraudulent companies start their activities, and their only goal is to make a profit.

 However, the reverse is also true, and in bear markets, people are less motivated to invest, and thus, there will be much less chance for scam projects to succeed.