In 2022, the cryptocurrency market struggled with volatility, with 700 new coins launched in the third quarter.
As of August 15, the number of cryptocurrencies tracked by CoinMarketCap was recorded as 20,575. This means that 709 new cryptocurrencies have joined the market.
Market Delivers Small Gains
The market is still trying to get over the distress created by the beginning of 2022. In general, after the volatility and unfortunate events we experienced as of this year, there were major withdrawals in the market. Despite this, Bitcoin (BTC) and Ethereum (ETH) showed slight increases.
The upcoming Merge of Ethereum (ETH) and the positive tests were also reflected positively on the prices. Even a small increase in prices caused some analysts to say that the bottom is seen in prices and the rise will follow from here. The launch of new crypto assets is also an indication that the belief that the market will rise is increasing.
Despite the Terra Collapse, Faith in the Market Continues
After the collapse of Terra’s blockchain, the market experienced massive declines. It’s also worth noting that Terra’s collapse casts doubt on the long-term sustainability of the thousands of existing digital assets. Doubts arise from ideas that most existing cryptocurrencies will disappear as the market matures. Additionally, the sustainability of the asset will depend on the solutions it provides.
New assets also rose amid increasing regulatory scrutiny globally. However, no strict regulations have been implemented to prevent the launch of new cryptocurrencies as they do not require a lengthy regulatory process such as listing stocks. On the other hand, the lack of regulation also allows scams to enter the market, with bad actors trying to take advantage of inexperienced users.
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