As the year draws to a close, the number of cryptocurrencies has increased in parallel with the growth of the cryptocurrency market. When employing a web archive tool, Finbold was able to determine that the number of crypto assets was 8,153 on January 1, 2021, based on the data obtained.
By comparison, the number of digital assets as of December 31 stands at 16,223, indicating 8,070 new cryptos were added since the beginning of 2021 alone, representing a 98.98% increase over the previous year and almost double the initial amount, according to CoinMarketCap statistics.
Each day, around 21 new cryptocurrencies are introduced to the market on average, as shown by the fact that 8,070 new cryptocurrencies have been launched since the beginning of the year.
Notably, the number of cryptocurrencies had passed 13,000 for the first time not long ago, on October 25. Despite the market experiencing a brief dip at the time, the entire market value was at $2.6 trillion, which is much more than the current crypto market capitalization, which remains at $2.26 trillion despite the addition of 3,000 new digital assets to the sector in a little more than two months.
To be clear, a greater number of cryptocurrencies does not necessarily translate into an increased market capitalization for the respective sectors, given that the vast majority of funds are concentrated in only the top 100 cryptocurrencies in terms of market capitalization.
In particular, we pointed out that, as of October 20, 2021, just 0.02%, or the top 3 coins out of all 12,917 coins at the time, controlled about 70% of the whole cryptocurrency market.
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