CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 82.67% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money

Nearly 5,000 cryptos launched in just a year

By David Burrows

08:30, 23 September 2021

Assorted cryptocurrencies
Over the last year nearly 5,000 new cryptocurrencies have been launched. Credit: Shutterstock

The cryptocurrency sector is not only attracting more investors, but the number of new altcoins joining the market is also accelerating at pace.

According to data acquired by cryptocurrency trading simulator Crypto Parrot, between September 2020 and September 2021, 4,908 new cryptocurrencies were launched, bringing the total number of coins to 12,046.

Huge growth in cryptos

To put it into context, over the past year, the number of new cryptocurrencies has grown by 68.75%.  

The report highlights some of the factors driving the growth of new cryptos in the past 12 months.

“The sector has surged in value, at one point hitting a cumulative market capitalisation of about $2trn, the report states. “The popularity spiked as digital currencies entered into the mainstream, backed by institutional investors.

“Notably, the entry of institutions is partly contributing to the sector's maturity, and creators of new coins don't want to miss out on the opportunity for more returns.

ETH/USD

3,408.65 Price
+10.140% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 6.00

DOGE/USD

0.40 Price
+6.050% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 0.0012872

ADA/USD

0.89 Price
+10.530% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 0.00646

XRP/USD

1.41 Price
+26.500% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 0.01168

However, the emergence of new cryptocurrencies does not necessarily translate to success. Certain coins fade away as the public ignore them.

What is your sentiment on LTC/USD?

91.53
Bullish
or
Bearish
Vote to see Traders sentiment!

Mainstream adoption

As the report indicates, the tokens likely to survive are those with real-world use cases, focused on mainstream adoption.

The increasing interest from investors in cryptos might be due to a reluctance to hold on to fiat money on the basis that it is perceived as being higher risk than cryptocurrencies.

Unlike fiat money, in which there is an unlimited supply, cryptocurrencies are totally the opposite – there is a limited supply.

Investors have seen the US dollar value dropping, while crypto prices have surged – so there is some attraction to cryptos as an inflation hedge.

Read more: El Salvador buys 150 more bitcoins

Rate this article

Capital Com is an execution-only service provider. The material provided in this article is for information purposes only and should not be understood as investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents and has not been prepared in accordance with the legal requirements designed to promote investment research independence. While the information in this communication, or on which this communication is based, has been obtained from sources that Capital.com believes to be reliable and accurate, it has not undergone independent verification. No representation or warranty, whether expressed or implied, is made as to the accuracy or completeness of any information obtained from third parties. If you rely on the information on this page, then you do so entirely at your own risk.

Still looking for a broker you can trust?

Join the 660,000+ traders worldwide that chose to trade with Capital.com

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading