Although the spread of cryptocurrencies increased, more than 12 thousand cryptocurrencies were buried in the falling market.
The long-term downtrend, called the bear market, has affected cryptocurrencies quite a lot. Bitcoin and Ethereum, known as the major coins, also suffered their share of the decline. Market drops around the world have caused more than 12,000 cryptocurrencies to disappear.
12 Thousand Cryptocurrency Disappeared
Thousands of cryptocurrencies, which came to life with the popularity of Bitcoin, were presented to people. In the bull market last year, the interest brought by the price increase paved the way for the proliferation of cryptocurrencies.
The difficult processes experienced this year have reduced the interest of investors in cryptocurrencies. Digital assets have entered a long-running bear market, mainly due to the cash flow concentrated on the dollar. The frauds, bankruptcies, lawsuits and bans on the crypto side have alienated thousands of people from the markets.
The collapse of crypto companies such as Three Arrows Capital and Celsius, especially the explosion of the Terra network and Luna’s massive collapse, has led people to fear. The fact that institutions started to withdraw, thinking that crypto markets should be regulated, caused the loss of trust in the sector.
There was quite a lot of money flow for cryptocurrencies last year. Today, however, this flow has dwindled considerably. CryptoCompare’s research analyst Jacob Joseph said in an interview;
“Even good projects that are public services after the challenges of the ongoing bear market will struggle to continue their operations when they lose access to capital and financing.”
Due to the small size of the crypto market in the past years, a total of 136 tokens disappeared in 2018, while a total of 766 tokens disappeared in 2019. However, the crypto market, which experienced its biggest popularity explosion this year, witnessed the disappearance of more than 12,000 tokens with the effect of recent drops.
According to analysts, while strong projects are developing in the bear market, hollow tokens will continue to disappear. Especially due to the regulations that will come to the sector, thousands of cryptocurrencies will disappear.
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