How Many Cryptocurrencies Are There In 2020?
According to CoinMarketCap, the total number of cryptocurrencies is 5,563 with a total market cap of $271.58 billion (as of June 10, 2020). Coinlore offers a different count, listing a total of 4,302 cryptocurrencies. It seems like there are more than 4,300 cryptos in the market. But, that does not tell the exact number of virtual currencies in existence today.
Cryptocurrencies have taken the entire financial world by storm and if you want to buy or trade crypto there are many avenues to pursue crypto trading. Whenever the term ‘cryptocurrency’ is mentioned, many associate it with financial freedom and opportunity. Great innovators and creators have flocked to the space to join the revolution of financial disruption. However, with so many technological advancements and innovations taking place in this space, crypto projects and companies are increasing with each passing day.
There was a time when one could count the types and numbers of cryptocurrencies on the one hand. But today, that is no longer possible. The crypto market has grown rapidly in the last five years. With all these cryptocurrencies, IEOs, ICOs, STOs, coins, scams, tokens, blockchain companies, and forks, it becomes quite challenging to make sense of the crypto world.
Most of these cryptocurrencies are attached to projects that were abandoned, bust, or ended up being exit scams. Not all of these crypto projects will last forever. Some are created as a joke or a test, and they soon fade away into oblivion.
Different sources use different listing methods to list cryptos, which result in different numbers. Looking at CoinGecko one discovers that there are 7,671 cryptocurrencies on record. That represents a big disparity with the rest of the sources. Hence it indicates that thousands of these coins have already ‘died.’
A Growing Trend
After ten years of existence, it is fair to say that cryptocurrency is a growing mega-trend with unlimited potential and opportunities. Initially, many naysayers believed that this fintech invention would not survive for long. But, these questions have changed considerably. They have now been replaced with the questions of the extent of this industry’s evolution.
Some industry skeptics have raised issues over the new currency’s power to overturn the financial landscape as it currently exists. Volatility, decentralization, and potential for money laundering are some of the issues that the skeptics are worried about.
Although many institutions, governments, and organizations ‘banned’ the use of the digital currency, its fast growth and mass adoption by leading global firms resulted in its rise in the current fiscal society. Facebook, JPMorgan, Microsoft, Shopify, and Tesla are all making advances in the industry.
Main Types of Cryptocurrencies
The blockchain brought together three main types of cryptocurrency. Bitcoin was the first blockchain ever created, and after that, many other blockchains were developed; these are known as altcoins. Litecoin, Ethereum, NEO, and Cardano are solid examples of these altcoins.
The last type of major cryptocurrency group is the tokens/dApps. These mainly include Civic (CVC), BitDegree (BDG), and WePower (WPR). Thus, all of the cryptocurrencies available in currently most likely fall in one of these groups.
Is It Possible To Know The Exact Number Of Cryptocurrencies?
Any developer can get into this space and create their cryptocurrency today. It might not be listed on any ranking site or resource, it might not be logged, but it would exist. Thus, there might be tens of thousands of unknown cryptos out there in the world.
Currently, it is quite challenging to determine what every crypto that has ever been created entails. Hence, analysts look for a particular number of redeeming factors to classify and qualify crypto and count it towards the total. In this respect, market cap and trading volume are considered highly.
Many traders, commentators, and analysts view the lower numbers reported by CoinMarketCap and investing.com as credible since they implement strict review processes. Nonetheless, some of the lesser volume tokens in these resources are abandoned projects that are still listed and sometimes even being traded. Hence, the exact number of legitimate cryptocurrencies in the market keeps changing on a daily basis.
Major and Minor Cryptocurrencies
Currently, 66 cryptos have a market capitalization of at least $100 million. However, that number keeps fluctuating as the market trends keep changing. Among then, many in the top 30 have real-world use-cases that keep pushing their value upwards.
On the other hand, almost 5,300 of the cryptos in existence have a market capitalization of below $1,000,000. Cryptos residing at the top of the list based on market cap attract the biggest speculation and the sensationalist news pieces. Due to the volatile nature of cryptocurrencies, the top 30 list frequently changes except for the top 4 for now, which features Bitcoin, Ethereum, Tether stablecoin, and Ripple.
Which Crypto Projects Are Viable?
Estimating the number of viable crypto projects is a daunting task. It is not possible to read all whitepapers and study more than 5,000 projects in any reasonable timeframe. The best metric to use is the 24-hour volume. Since crypto prices only indicate the most recently paid price, a small project can inflate their numbers.
Some commentators advise that investors should go for projects that have a 24-hour trading volume higher than $10,000,000. Unless one is a day trader, it is advisable to read the whitepaper and research the brand. Also, looking at the community and sentiments is essential to make informed decisions.