The cryptocurrency market is gradually maturing due to the disappearance of over 1400 altcoins, which may signify an improvement in prospects for key assets.
State of the Cryptocurrency Market
According to a report by Alphractal, over 1400 altcoins have become inactive, resulting from various factors such as fraud, low trading volume, and delisting on major exchanges. These events indicate a significant market cleansing where only quality projects can survive.
Positive Implications for Leading Assets
Despite the significant number of inactive altcoins, the reduction in low-quality projects may accelerate the maturity of the crypto industry. Consequently, potential liquidity could flow towards useful and quality projects, increasing investor confidence and institutional interest.
Historical Perspective on Market Cleansing
Historically, the disappearance of speculative coins in 2017 and 2021 indicated a significant liquidity shift towards reliable assets. This trend has often led to increased interest in cryptocurrencies and their integration into the traditional economy.
The ongoing cleansing phase in the cryptocurrency market could lead to significant growth for assets like Bitcoin and blockchain-based tokens, which may gain larger market shares amidst decreased competition from numerous altcoins.
