Are more altcoins killing altcoins?

[hugeblack]

In the past, the spread of altcoins was a sign of market prosperity, as more projects with different capabilities meant more options and thus more cash flow, but in the last four years the market has witnessed a state of madness, as despite the increase in money being invested in altcoin, the number of tokens/coins has swelled from hundreds per day to thousands per day, and the bear market was an indicator of failure for these projects.
Is this growth beneficial for altcoins or will it make investors abandon from investing?



source -----> https://www.statista.com/statistics/863917/number-crypto-coins-tokens/

[ABCbits]

In terms of total money invested or market cap, i would say more altcoin is still good. But one of the problem is more altcoin doesn't always mean more innovation or different capability. So investor usually either after more established altcoin or speculating which altcoin could let them earn short-term profit before abandoning it.

[Faisal2202]

In the past, the spread of altcoins was a sign of market prosperity, as more projects with different capabilities meant more options and thus more cash flow, but in the last four years the market has witnessed a state of madness, as despite the increase in money being invested in altcoin, the number of tokens/coins has swelled from hundreds per day to thousands per day, and the bear market was an indicator of failure for these projects.
Is this growth beneficial for altcoins or will it make investors abandon from investing?

Back when there were few blockchain projects the number of new alts was also lower as they were based on this limited blockchain (AKA Token require blockchain) Nowadays, every third or at least every fourth project comes with its own coin (coin if comes with its own blockchain) so they don't have to meet any requirements to launch their tokens. And we are seeing a lot of projects in the market some are good while some are just there to rug pull. Some projects provide the service to help you make your own coin (not a token).

The main point is, that this increment in the development of new projects is also good. For example, speaking of the TON project only, hundreds of telegram bots are using the TON network for their existence, and gained a lot of market cap as well such as NOT and there are more in the line. These projects based on the TON blockchain only are numerous and help tons to gain more users which is good for TON. Thus only a specific blockchain is being congested, otherwise, the main blockchain would be congested as well. I am glad that these telegram bots are not being built on the BTC blockchain. But RUnes and Ordinals are already doing the work to make it congested. So these abundant coins (come with blockchain of their own) are saving us from main projects and at the same time helping them grow as well. Helping the market to grow.

[Rubel007]

The new altcoins increases the number of investors in the market and definitely increases the money supply which is a positive site for the crypto market but I can't think of it as positive at the moment. Because so many altcoins are being added every day, investors are now suffering from lack of confidence. Now investors have learned that the projects that come up may not rise to new heights after the hype end. There is a high chance of losing if you invest there. Moreover, the condition of all the strong projects is not good. Then the new projects will come to the market only to grab opportunities which have no basis. I think the additional growth of new projects is taking the market to the worst situation.

[NotATether]

No, don't be silly.

Just because more altcoins are being created everyday, doesn't take the focus away from altcoins that already have people's attention, unless they fall off of CoinMarketCap.

Also, I think CoinMarketCap is the ultimate beneficiary of all this - they make money every time a coin is made and from all the people who visit the site!

[bitmover]

In terms of total money invested or market cap, i would say more altcoin is still good. But one of the problem is more altcoin doesn't always mean more innovation or different capability. So investor usually either after more established altcoin or speculating which altcoin could let them earn short-term profit before abandoning it.

I agree.

And bad projects are just abandoned after some time. The market ignores them and most of those coins literally go to 0. I have seen that happen to a lot of projects... and it will continue to happen

The freedom to create tokens and sell them in services such as uniswap allows a lot of speculation.  I don't know if that is positive in the end, as it is good for scammers...

[NotATether]

The freedom to create tokens and sell them in services such as uniswap allows a lot of speculation.  I don't know if that is positive in the end, as it is good for scammers...

Most coins will get absolutely no speculation, or only a small amount of it, because their userbase is limited and most people don't care about the coin.

Among the rest, most of the others will just get negative speculation that makes the price drop like a rock, because people have a greedy mindset that makes them sell at the top.

Only a tiny fraction manage to get any positive speculation. No scammers to see here - they only dump their bags.

[Stompix]

No, don't be silly.

Just because more altcoins are being created everyday, doesn't take the focus away from altcoins that already have people's attention, unless they fall off of CoinMarketCap.

Dash, NEM, NEO, EOS, Elrond, how many have lost their userbase and are not able to reach forget a new ATH but at least on par with the last one? Once you go to the second page of any listing you will see a ton of old coins there and a lot that have lt even managed to reach again in the last year yoy based.

There is a limit to how much money people can throw at those alts and new ones devour that share, you don't even have to go that low in the ranking, cardano and polkadot are clear examples.

But one of the problem is more altcoin doesn't always mean more innovation or different capability.

I stopped in 2017 looking for innovation from these coins, the amount of true innovations seems like is going down faster than anything, what we have more and more is vaporware or useless features but packed as shiny as possible to sell.

[MUGNIA]

there are many new altcoins, it will not cause other altcoins to die, but the strength of the team must be to overcome how to convince investors to invest in the project that was founded, because investors will invest if the project being promoted is promising and planned in every development and journey to achieving perfection in one project and most importantly, many investors hope for short-term profits so they can move on to other projects that have more potential to provide profits

[Mr. Magkaisa]

No, don't be silly.

Just because more altcoins are being created everyday, doesn't take the focus away from altcoins that already have people's attention, unless they fall off of CoinMarketCap.

Also, I think CoinMarketCap is the ultimate beneficiary of all this - they make money every time a coin is made and from all the people who visit the site!

      -   You have a point in what you said, mate, and there is also the fact that the more altcoins are created every day, potential or not, cmc will benefit, Let's also include Coingecko. Although most of the altcoins in the field of the crypto space are not successful either, but there are still many that are successful in the market and are also the choices of investors to grow their capital.

Also, nowadays, in my assessment and observation, I notice that there are more altcoins that have real potential, from Layer 1 and 2, other meme coins, and even other AIs, and even other coins under Degen, and RWA.

[philipma1957]

In the past, the spread of altcoins was a sign of market prosperity, as more projects with different capabilities meant more options and thus more cash flow, but in the last four years the market has witnessed a state of madness, as despite the increase in money being invested in altcoin, the number of tokens/coins has swelled from hundreds per day to thousands per day, and the bear market was an indicator of failure for these projects.
Is this growth beneficial for altcoins or will it make investors abandon from investing?



source -----> https://www.statista.com/statistics/863917/number-crypto-coins-tokens/

We. Are stable .

9900 in Jan 2022 and 10,000 in June 2024.

But if we ever do a big run up to 125k btc and 6k eth I think alts will run up to 13 or 14k alts which diluted things a lot.

[milewilda]

In the past, the spread of altcoins was a sign of market prosperity, as more projects with different capabilities meant more options and thus more cash flow, but in the last four years the market has witnessed a state of madness, as despite the increase in money being invested in altcoin, the number of tokens/coins has swelled from hundreds per day to thousands per day, and the bear market was an indicator of failure for these projects.
Is this growth beneficial for altcoins or will it make investors abandon from investing?

We do know that when it comes to innovation then its something that would really be that inevitable and not all coins in the market are really tha shit on whereas there are still those
projects which are trying to beat up to those who are sitting on the top rankings and really that believing that they could really be able to do such thing and this is why developers would really be creating on which far more better in terms of utility but neither those projects do succeed or fail which will really be that determined by community recognition or demand in the end of the day.
As an investor and on the point of view then investing in crypto will really be just that depending on you whether you would really be bothered or hindered due to tons of coins been launched on everyday or not.

[Captain Corporate]

Not exactly, but it doesn't always help either. We need to remember that we are not going to get anything all that crazy, most coins/tokens that gets created, ends up getting out as well, so 100 new ones, 100 dead ones, and the balance stays. Secondly, if anything new comes out, and it gets a lot of attention, it creates hype for the market and allows people to invest more and have fun. When people have fun, that is good for the market and we should be happy about it as well. I know that a lot of people think that they can get away with what we have, but I think the fun part is quite important as well.

[Rruchi man]

Is this growth beneficial for altcoins or will it make investors abandon from investing?

This is still growth, because the introduction of more altcoins will create more awareness for the already existing altcoins that have good performance.

 No matter the number of altcoins flooding the market there are many new investors in cryptocurrency who would never still consider bitcoin as a first option for reasons like they are late to it or it is too high already to invest in. Altcoin is the choice for these people.

[akeemqaz]

For me, new altcoins are killing other altcoins with little or no use case. If an altcoin has a strong and good use case with a decentralized app or even both decentralized and centralized apps, then no other altcoin will kill it. It will always outperform new ones. Examples are Solana and Injective. These altcoins are growing steadily as new altcoins arise. So, I think this altcoin survival depends on how useful they are.