It's challenging to tell how many cryptos there are at any moment. However, most mainstream estimates suggest there are more than 19,000 cryptocurrencies. Following the 2021 bull run, it was common for 1,000 digital tokens to hit the market each day.
The best way to gauge the current number of cryptocurrencies in the world is to check reputable crypto price aggregator websites. CoinMarketCap and CoinGecko constantly list thousands of digital coins and tokens on both centralized crypto exchanges (CEXs) and decentralized exchanges (DEXs).
There are a few explanations behind the continued rise in cryptocurrencies. It's becoming easier for developers to create different cryptos. Smart contract blockchains like Ethereum, Solana (SOL), and the BNB Smart Chain allow users to build dApps (decentralized apps) with digital tokens. It's also easier for people with zero coding experience to mint NFTs (non-fungible tokens) on platforms like OpenSea and Rarible.
The rapid growth in the global crypto market cap has helped spur innovation in this sector. Unfortunately, the increased prominence of cryptocurrencies has also attracted many scammers. Although many cryptos have legitimate use cases, hundreds of sham tokens are connected to Ponzi schemes and rug pulls. Even today, when stronger security systems are in place, many scammers take advantage of the relative lack of regulation in the crypto space.
It's also common for developers to introduce cryptocurrencies that either mimic or compete with successful projects. For example, after Dogecoin rallied in 2021, dozens of developers introduced similar dog-themed meme coins to take advantage of DOGE's popularity (e.g., Baby Doge Coin and Dogelon Mars). In the NFT space, derivative projects often copy popular collections like the Bored Ape Yacht Club (BAYC) or CryptoPunks.
While there have been hundreds of sham cryptos and derivative projects in the past, it doesn't mean every new cryptocurrency is valueless. Many developers and companies are genuinely interested in using blockchain to achieve unique goals. As more quality information spreads on what Web3 is and how to use it, more purchasers and coders are introducing products and services that can enhance the crypto space.
Each cryptocurrency has a unique backstory, but in general the most popular digital assets fall into one of the following four groups:
As there’s a wealth of cryptos to research and practically impossible to remember, here are a few of the most significant cryptos in three major categories:
Market capitalization, or market cap, refers to the total cash value of a crypto project. Like stocks, the higher a crypto's market cap, the more influential it is. In addition to stablecoins, the following two cryptos have maintained market cap dominance for years:
Often called non-Bitcoin cryptos, stablecoins are cryptocurrencies that maintain a 1:1 ratio with another asset, mostly the U.S. dollar. Since stablecoins are supposed to be non-volatile digital assets, they have gained a large share of the crypto market. Here are three dominant USD stablecoins:
Despite Ethereum's 2022 upgrade to PoS, dozens of competing projects argue they're already better than Ethereum 2.0. Here are some of the top "Ethereum competitors" that often make headlines in today's crypto industry:
Due to the decentralized nature of blockchain, it's difficult to "kill" a cryptocurrency. Even today, many failed crypto projects are still on the market (aka "zombie chains"). But just because most cryptos survive indefinitely doesn't mean all projects will succeed.
Many purchasers like to compare today's crypto sector with the Dot-Com Bubble of the ‘90s. During this era, the stock value of many speculative internet companies rose parabolically only to fall in the early 2000s. Dozens of companies that soared during the Dot-Com Bubble went out of business, but a few became successful big tech companies like Amazon and Apple.
Similarly, it's most likely crypto projects with solid fundamentals, dedicated developers, and strong communities will continue to thrive.
At Worldcoin, we aim to increase global crypto awareness and adoption. To do this, we've created a revolutionary eye-scanning device called the Orb. With this technology, we can verify crypto wallets without interfering with a user's privacy. We hope to significantly reduce scams in cryptocurrency while preserving Web3's decentralization and anonymity.
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