Crypto winter was at its peak in August 2022. There are ominous signs that the global cryptocurrency market is slowing down tremendously. In 2022, the crypto market crash took away $2 trillion so far with no visible signs of recovering in the next two quarters. The crypto crash has unraveled numerous negative impacts on the industry apart from the obvious loss of value and job cuts. A recent update has revealed the crypto market is slowing down by virtue of the number of new cryptocurrencies that were launched in 2022. In February 2022, there were 10397 cryptocurrencies, which has rolled back to 10k in August 2022. In August 2021, there were around 6k cryptocurrencies— a 70% rise could not salvage the crypto crash scenario.
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Why crypto numbers dropped in 2022?
Crypto winter for 10k cryptocurrencies seems to be an irony! This is a kind of implosion that came after two 10 years of solid run. In the last 2 years, the number of cryptocurrencies grew by over 60%. Yet, in the last 5 years, the market has retracted in size and number even as investors and merchants still scrambling hard to choose the right digital asset or digital currency with the best return on value. Crypto numbers are dropping due to two reasons:
- New regulations related to AML to stop terror funding and illegal cross-border payments forced many crypto developers to give up on their operations.
- With values dropping even for biggest crypto markets, there was visibly no future for smaller and new cryptocurrencies.
A market dominated by Bitcoin, Ethereum, Binance, BNB and USD hold more than 75% of the total market cap and there loss has come as a brutal hit to the crypto juggernaut. With no signs of crypto winter ending, it wouldn’t be a surprise if the market contracts further an we see fewer cryptocurrencies in 2023 than what we had in 2021 and 2022.
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