Editing by Nathaniel Cajuday
Crypto asset market tracker Nomics revealed recently that more than 12,100 cryptocurrency projects/tokens have effectively stopped trading this year. The number of projects that ceased increased by over 200% from the 3,700 last year.
According to the report, the coins are neither technically dead nor alive but have attracted no trading activities since last year.
Consequently, experts believe even good projects are struggling to sustain themselves in the current crypto winter. The bear market started earlier this year when even the largest cryptocurrencies crashed, and the wealth of crypto billionaires significantly went down. (Read more: Bear Market Destroys Crypto Billionaires Wealth)
One of the triggers of this current bear market was the collapse of Terra’s algorithmic stablecoin USDT, the largest stablecoin by market cap, and its crypto LUNA last May, where the crash resulted in $60 billion worth of losses. (Read more: Newsletter: What happened to USDT, UST, and LUNA | May 12, 2022)
In an interview, Jacob Joseph, a research analyst at researcher CryptoCompare, noted that during the bull market last year, there was plenty of money, attention, and liquidity for new and existing projects.
“However, even good projects with utility will struggle to sustain their operations in the ongoing bear market as they lose access to capital and funding,” he explained.
As per the data from CoinMarketCap, the current number of cryptocurrencies actively trading on the global crypto market is 21,247.
Further, the global crypto market cap is currently below the one trillion dollar price point. With the bear market still ongoing, Bitcoin, the leading cryptocurrency, fell below the $20k price point this week, currently trading at $19,502. BTC reached an all-time high of nearly $69,000 in November 2021. (Read more: Bitcoin Price Crashes Below $20K, ETH Price Under $1K)
Along with crypto, the non-fungible tokens (NFT) space have also been affected by the crypto winter where it crashed by 97% in just 9 months. The value of the market went down from $17 billion in January 2022 to $466 million in September. (Read more: NFT Market Volume Drops 97 Percent From 2022 Highs)
This article is published by BitPinas: Over 12,000 Crypto Projects Cease Trading This Year – Nomics Report
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