The number of cryptocurrencies almost doubled since 2019 and hit over 5,300

OVER the last eight years, the number of cryptocurrencies circulating in the crypto space increased significantly. Back in 2013, there was just a handful of digital coins. However, after the crypto market boom in 2017, the number of cryptocurrencies continued surging, reaching a four-digit figure this year.

According to data presented by AksjeBloggen.com, the number of digital coins almost doubled since 2019, reaching over 5,300 in May.

2020 Witnessed the Highest Annual Increase of Crypto Coins

One of the major drivers of the growth seen in the crypto market has been a large increase in investors’ appetite. In 2017, the cryptocurrency industry saw record-breaking growth rates in the number of market participants and market capitalization. Also, cryptocurrencies received huge attention from government institutions which legitimized them as investment assets.

The CoinMarketCap and Investing.com data showed the total number of cryptocurrencies and digital assets on exchanges soared by 216% that year, rising from 617 to 1,335. As the number of crypto coins more than doubled, the ICO market saw equally historical activity levels. In total, over $6B was raised in more than 382 ICO’s during 2017.

2017 was also a transforming year in the crypto market in terms of market share concentration. At the beginning of 2017, Bitcoin held almost 88% of all capital invested in the crypto market. With over 700 new cryptocurrencies that hit the market in 2017 alone, Bitcoin’s market share dropped to 38% by the end of the year.

The rising success and popularity of Bitcoin and other cryptocurrencies made investors more willing to invest capital into this new asset class, driving the further growth of the crypto market.

In March 2018, there were close to 1,700 cryptocurrencies in the market, a 30% increase in six months. By the end of 2019, this figure jumped by 65% to over 2,800. However, statistics show that 2020 witnessed the most significant annual increase in the number of cryptocurrencies, rising to over 4,000 by the end of the year. In the last six months, almost 400 new crypto coins entered the market, with their total number rising to nearly 5,400.

Top 20 Cryptocurrencies Make up Nearly 90% of Total Market

Although the number of cryptocurrencies surged over the years, most of them might not be that significant. The CoinMarketCap data revealed that the top 20 crypto coins make up nearly 90% of the total market.

Last week, the combined market cap of the crypto market amounted to $1.39 trillion, a significant drop from $2.43trn at the beginning of May.

Bitcoin, the biggest digital currency, still accounts for around 45% of the global crypto market cap, despite its recent price slump. Ethereum, as the second-largest cryptocurrency globally, holds a 17% market share as of last week. Tether, Dogecoin, and Cardano follow with a 4%, 3%, and 2.9% market share, respectively.

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