Several crypto and Blockchain experts from the industry say that thousands of altcoin projects could be wiped out in the coming years and the number of Blockchains will decrease.
Crypto firms say thousands of altcoin projects will collapse
There are currently more than 19,000 altcoin projects and hundreds of Blockchain platforms in the cryptocurrency market. The underlying technology on which most of these various cryptocurrencies are based is a Blockchain platform like Ethereum. The recent shocking crash of the so-called algorithmic stablecoin terraUSD and accompanying token LUNA has focused attention on the hundreds of cryptocurrencies in existence and whether they will all survive.
Experts compare the market to the early dotcom days
Last week Web3 Foundation CEO at the World Economic Forum in Davos, Switzerland Bertrand Perez warned that as a result of the confusion caused by the Terra collapse, it poses certain dangers to investors. Perez likens the current state of the cryptocurrency market to a dotcom bubble:
One of the consequences of what happened with the Terra issue last week is that we have come to a point where there are too many Blockchain and altcoin projects out there. You had a lot of dotcom companies at the beginning of the internet and most of them were scams and didn’t add any value and they were all cleaned up. And now we have firms that are both useful and legitimate.
According to Ripple CEO Brad Garlinghouse, speaking at the Davos summit, altcoin projects are likely to each have “points” in the future. As Kriptokoin.com, we have discussed the details in this article.
Guggenheim Chief Investment Officer Scott Minerd said last week that most cryptocurrencies are “garbage” but Bitcoin and Ethereum will survive.
Experts’ opinion comes at a time when the altcoin market is under pressure
Bitcoin has lost more than 50% from its November high and many other altcoins have dropped significantly from their ATH levels. From Ethereum to Solana, many different Blockchain systems are competing for market supremacy. However, Brett Harrison, CEO of cryptocurrency exchange FTX, believes that not all of the hundreds of cryptocurrencies currently in existence will survive. According to Harrison:
When you think about blockchains, I don’t believe there will be hundreds of different Blockchains in 10 years. I think there will be a number of obvious winners for a variety of applications. And we will watch how the market reacts over time.
NFT market latest
The first half of 2022 was stagnant for the crypto market, while NFTs were on the decline. The prices of large NFT collections fell alongside popular stocks that have lost more than 50% over the past month amid widespread sales of risk assets as investors fear rising inflation, signs of a softening economy and the Federal Reserve’s tightening of monetary policy.
Bored Ape Yacht Club, one of the most popular NFT collectibles, has seen the base price or lowest among its items drop to 88 ETH on Friday, or about $153,000 from 138 ETH on April 27.
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