More than 19,000 different cryptocurrencies are currently on the market

Follow CNBCmarket cryptocurrency There are currently more than 19,000 different tokens/coins based on dozens of blockchain platforms. For example, many tokens are being built on top of the Ethereum blockchain.

However, the collapse of the stablecoin UST and token LUNA developed by the Terra project team sent shockwaves throughout the market, casting doubt on the future of thousands of existing ones.

“One of the problems that Terra poses is that there are too many blockchains and tokens out there. That brings confusion and risk to many users,” Bertrand Perez, CEO of the Web3 Foundation, said at the World Economic Forum.

Perez says the situation is reminiscent of the early days of the dotcom bubble. “There are too many dotcom companies and many of them are scams, do not bring any value and that has been changed. Now we have profitable and legitimate companies,” said Perez.

Despite having more than 19,000 different units, Bitcoin and Ethereum have dominated more than 50% of the market capitalization. Image: CoinMarketCap.

Same opinion, Brad Garlinghouse – CEO of payment company blockchain Ripple cross-border – question the necessity when the market is up to 19,000 tokens/coins. On the other hand, the world of fiat money has only 180 currency units in the world.

On the negative side, Scott Minerd – Chief Investment Officer of Guggenheim – thinks most cryptocurrencies are junk but Bitcoin and Ethereum will survive.

Currently, various blockchain platforms such as Ethereum and Solana are vying for the top spot in the industry through technology features, transaction costs or transaction speed. However, Brett Harrison – CEO of US-based exchange FTX – believes that not all blockchain will survive.

“There probably won’t be hundreds of different blockchains in the next 10 years. I think a few blockchains will take the lead. The market will change on its own over time,” said Harrison.

According to data from CoinMarketCap, the cryptocurrency market exists 19,731 tokens/coins. However, Bitcoin dominance is up to 46.2% while Ethereum has 17.7%.

Total market capitalization reached 1.227 billion USDthe trading volume in the last 24 hours reached 42 billion USD. Compared to the peak set in November 2021, market capitalization has lost more than 56%.

(According to Zing)