The cryptocurrency market has experienced remarkable growth, with over 1,000 new cryptocurrencies listed in the past five months, bringing the total number of coins to 9,708 in July, according to a recent report.
Data from AltIndex.com reveals that since February, approximately 1,023 new cryptocurrencies have been introduced to the market, defying the tightening regulations imposed on crypto firms.
Over the years, the cryptocurrency market has witnessed significant expansion, with the total number of cryptocurrencies surging from slightly over 60 in 2013 to more than 4,500 by 2021, based on data from Statista and Investing.com. Following the crypto boom in 2021, this figure more than doubled, with nearly 1,000 new cryptocurrencies being added on a monthly basis.
While reaching an all-time high of nearly 10,400 coins in February 2022, the market experienced a subsequent decline, often referred to as the “crypto winter.” This period led to a notable drop in the number of available coins and tokens, as highlighted in the report.
Between February 2022 and February 2023, more than 1,700 digital coins were delisted from crypto exchanges, resulting in a reduced total number of 8,685. However, despite these setbacks, the crypto market has shown resilience and rebounded over the past five months, witnessing a substantial increase in the number of cryptocurrencies listed.
The regulatory landscape has presented challenges for the crypto industry, impacting venture funding. Global cryptocurrency funding dropped to $2.34 billion in the second quarter (Q2) of this year due to the strict regulatory environment surrounding prominent crypto exchanges. This decline marks the fifth consecutive quarter of decreasing crypto funding, according to a report in TechCrunch.
Regulatory actions have affected major players in the crypto space, including Binance and its CEO Changpeng Zhao, who faced lawsuits from US regulators alleging deceptive practices and multiple charges filed in federal court. Additionally, Belgium’s Financial Services and Markets Authority (FSMA) ordered Binance to cease all virtual currency services in the country.
Several crypto companies have faced financial challenges, resulting in bankruptcy filings. Notable entities, such as Genesis Global Trading (a subsidiary of Digital Currency Group), FTX, BlockFi, Three Arrows Capital, Celsius Network, and Voyager, have filed for Chapter 11 bankruptcy in recent months.
Despite these hurdles, the crypto market continues to demonstrate resilience, with new coin listings surpassing 9,700, defying the regulatory twists and turns in the industry. The industry’s ability to adapt and innovate amid challenges underscores its potential for further growth and evolution.
