More than 1’000 Crypto Tokens Died in 2022 – Good Riddance To Most

The cryptocurrency market has experienced a significant decline in the number of active tokens in the past year. According to Statista, the number of active cryptocurrencies dropped from its 2021 high of 10,397 to 9,310, the largest annual decline ever recorded. While this may seem like a significant decrease, it’s important to note that the cryptocurrency market is still vast, with more than 9,000 active tokens.

The cryptocurrency market has faced numerous challenges in 2022, including the high-profile collapse of FTX and ongoing economic uncertainty. These events have contributed to fear, uncertainty, and doubt surrounding the cryptocurrency space, leading to a 72% decline in market capitalization from its November 2021 high of $3 trillion to its current value of $850 billion.

The rapid increase in tradeable tokens from November 2021 to January 2022, with a jump of approximately 2,400, is thought to be a result of the bull market, which saw confidence and greed flourish. However, this increase was not sustainable, and many of these tokens either failed to survive the crypto winter or were found to be scams or rug pull coins. Coingecko estimates that 8,000 tokens were launched in 2021, with only 59% still active today.

The fluctuation in the number of tokens can be attributed to a number of factors, including the performance of the market, economic uncertainty, and advances in law enforcement efforts against blockchain-related crimes. It remains to be seen whether the future of the cryptocurrency market will consist of a few high-impact cryptocurrencies or a large number of tokens. Regardless, it seems that a culling of the market is currently underway, with the hope that the blockchain space can eventually be rehabilitated.