The crypto market has been characterized by significant volatility in 2022, a factor that was likely to impact new projects joining the market. However, this is not the case, as developers attempt to get a slice of the market by launching new coins.
In particular, as of August 15, the number of cryptocurrencies tracked by CoinMarketCap stood at 20,575. By deploying a web archive tool, Finbold has determined that the figure represents a growth of 709 new digital assets or a 3.5% increase from the 19,866 recorded on June 15.
The total number of digital assets, August 15, 2022. Source: CoinMarketCap/Wayback Machine
Market makes minor gains
The growth comes as the general market attempts to maneuver the crypto winter period that has dominated the first half of 2022. Notably, after a turbulent start to the year, the general crypto market has embarked on a short-term rally led by Bitcoin (BTC) and Ethereum (ETH).
For instance, after being threatened to correct further below $20,000, Bitcoin has recorded minor gains targeting the $30,000 level after topping $25,000 on August 14.
Elsewhere, Ethereum ranks among the biggest gainers after sustaining a bullish momentum powered by the upcoming Merge upgrade that will transition the blockchain to a Proof-of-Stake (PoS) mechanism. At the same time, Ethereum continues to offer an underlying technology on which new digital assets can be built.
The gains have pushed several analysts to suggest that the market has bottomed, and there is a possibility of a new rally in the second half. Consequently, it can be assumed that the emergence of new cryptocurrencies is inspired by the possibility of the market rallying again.
Entities unveiling new assets are hoping to cash in, considering that cryptocurrencies are known to return significant profits in a short period despite their volatility.
New assets despite crypto crash
Interestingly, new cryptocurrencies have also emerged despite the crumbling of established ecosystems like Terra (LUNA). It is worth noting that the crush of Terra has cast doubt on the long-term sustainability of the thousands of existing digital assets.
The doubts align with the consensus that most current coins will fade out as the market matures. Additionally, the sustainability of the asset will depend on their specific utility.
The new assets have also surged amid the increased regulatory scrutiny globally. However, no stringent regulations have been implemented to curb the launch of new cryptocurrencies since they don’t require a lengthy regulatory process like listing stocks.
On the other hand, lack of regulation is also driving the entry of scams into the market with bad actors attempting to take advantage of unsuspecting users.