Altcoin
2.52 Million Altcoins Are Ruining Crypto’s Future
![](https://coin2049.io/wp-content/uploads/2024/06/BIC_predictions_negative.png)
A glaring issue within the cryptocurrency market is becoming evident. The proliferation of altcoins, with over 2.52 million created, is suffocating the industry.
This unprecedented growth in new tokens, while initially a sign of a booming market, now poses significant challenges.
2.52 Million New Tokens Created
Back in 2020, the crypto market experienced a frenzy. Liquidity surged as retail investors and venture capitalists (VCs) poured money into the industry. VCs, in particular, invested heavily, contributing to the development of numerous projects.
Will Clemente, the co-founder of Reflexivity Research, reflected on how the strategy was straightforward back then. Investors needed to allocate capital in high-beta altcoins and enjoy the ride as they outperformed Bitcoin.
“In 2020, you go out on the risk spectrum, those things are going to have higher beta to Bitcoin and you just get long all the vaporware and all that stuff goes up,” Clemente explained
This trend continued in 2022 when VC funding reached a record $11.1 billion in the first quarter alone. However, this flood of new capital led to an unsustainable increase in the number of altcoins.
![Venture Capital Investment in Crypto](https://beincrypto.com/wp-content/uploads/2024/06/chart-13-850x567.png)
The number of tokens tripled between 2020 and 2022, but the subsequent bear market hit hard. High-profile failures, such as the collapses of LUNA and FTX, caused widespread market turmoil. Projects that had raised substantial funds chose to delay their launches, waiting for more favorable market conditions.
By late 2023, market sentiment had improved, sparking a surge in new altcoin launches. This resurgence carried into 2024, with over a million new tokens introduced since April. Consequently, the total number of altcoins reached 2.52 million across different blockchains.
“There were nearly 1 million new crypto tokens created in the last month, a number that is 2x the total number ever made on Ethereum from 2015-2023,” Coinbase director Conor Grogan said.
Read more: 7 Hot Meme Coins and Altcoins that are Trending in 2024
![New Altcoins by Blockchain](https://beincrypto.com/wp-content/uploads/2024/06/Screenshot-2024-06-19-at-5.18.48-PM-850x398.png)
Although these numbers might be inflated due to the ease of creating meme coins, the sheer volume of new tokens is staggering.
How Altcoins Are Hurting Crypto
This deluge of new tokens is problematic. The more altcoins that flood the market, the greater the cumulative supply pressure.
Estimates suggest an additional $150 million to $200 million worth of new supply enters the market daily. This constant sell pressure depresses prices, akin to inflation in traditional economies. As more altcoins are created, their value relative to other currencies diminishes.
“Think of token dilution as inflation. If the government prints US dollars, this, in turn, reduces the dollar’s purchasing power relative to the cost of goods and services. It’s the exact same in crypto,” crypto analyst Miles Deutscher explained.
Many of these new tokens have low Fully Diluted Valuations (FDV) and high float, exacerbating supply pressure and dispersion. This environment would be manageable if new liquidity was entering the market.
However, with insufficient new capital, the market is left to absorb the constant influx of new tokens, leading to price suppression.
Read more: Which Are the Best Altcoins To Invest in June 2024?
![Token Allocation by Project](https://beincrypto.com/wp-content/uploads/2024/06/GQRDceMboAAw6lC-850x487.png)
This could be one of the reasons why retail investors are reluctant to engage, feeling disadvantaged compared to VCs.
In previous cycles, retail investors could achieve significant returns. Now, tokens often launch at high valuations, leaving little room for growth, and subsequently bleed as their unlock schedules commence.
“The skew towards private market is one of the biggest issues in crypto, especially compared to other markets like equities and real estate. This skew becomes an issue because retail feel like they can’t win,” Deutscher concluded.
Addressing this issue requires concerted efforts from multiple stakeholders. Exchanges could implement stricter token distribution rules, and project teams might prioritize community allocations. Additionally, higher percentages of tokens could be unlocked at launch, potentially with mechanisms to discourage dumping.
Read more: 10 Best Altcoin Exchanges In 2024
The market’s current state reflects a need for greater pragmatism. Exchanges should consider delisting defunct projects to free up liquidity. The goal should be to create a more retail-friendly environment that benefits everyone, including VCs and exchanges.
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Altcoin
Spot Ethereum ETFs to Go Live on July 15, ETH Bull Run Ahead?
![](https://coin2049.io/wp-content/uploads/2024/05/spot_ethereum_etf_2.jpg)
As we proceed into July, the biggest question for the crypto community is when will the spot Ethereum ETF go live for trading. Nate Geraci, president of The ETF Store, predicts the Ethereum ETFs to go live by the 15th of July.
Geraci stated that with the revised S-1 submission for Ethereum ETFs to happen in July, the final S-1 approval from the SEC could arrive around July 12. Thus, July 15, Monday, would be the most probable day to begin trading Ether ETFs.
Wen spot eth ETF?
BBG sticking w/ mid-July.
Amended S-1s due July 8th.
Potential final S-1s by July 12th.
Would theoretically mean launch week of July 15th.
via @emily_graffeo @olgakharif pic.twitter.com/NG8xhtCP21
— Nate Geraci (@NateGeraci) July 3, 2024
Issuers to Address SEC Query On Spot Ethereum ETF
Last Friday, the US SEC returned the S-1 filings to issuers to address some minor questions. Sources familiar with the matter stated that the issuers have been already working on it. As we know, in May, the SEC approved the 19b-4 filings to list the Ether ETFs on exchanges. However, they can only go live for trading after the SEC approves the S-1 submissions.
Steve Kurz, head of asset management at Galaxy Digital, expected the Ether ETF approval in the next couple of weeks. Speaking to Bloomberg TV on Tuesday, July 2, Kurtz said:
“This is window-dressing, the SEC is engaged. We’ve been doing this for months now. We did it for the Bitcoin ETF, the products are substantially similar — we know the plumbing, we know the process.”
Now the bigger question in everyone’s mind is will the Ether ETF prove to be a strong catalyst to drive the crypto market higher?
Also Read: Why Are Ethereum Institutional Products Depleting Before ETF Launch?
Ethereum to Outperform Bitcoin
On Tuesday, K33 Research published a report stating that Ethereum would be outperforming Bitcoin post the ETF approval. As per K33, the launch of Ether ETfs would absorb nearly 0.75% to 1% of all ETH in circulation within the initial five months. This expectation is in line with that of Gemini which predicted $5 billion inflows within the first six months of launch. K33 senior analyst Vetle Lunde said:
“ETFs are a solid catalyst for relative ETH strength as the summer progresses and flows accumulate, and I firmly view current ETH/BTC prices as a bargain for the patient trader.”
The ETH/BTC ratio steadily declined from 0.056 after the Bitcoin ETFs launched, reaching 0.046 by May 24. However, unexpected news that the SEC would soon approve Ethereum ETFs boosted the ratio back up to 0.055.
Also Read: ETH/BTC Price Prediction: ETF Hype, FOMO and Ethereum Price Imminent Rally To $5,000
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Altcoin
Toncoin (TON) v Cardano (ADA): On-chain Data Show Gains
![](https://coin2049.io/wp-content/uploads/2024/07/TONCOIN-1-1-1-1.jpg)
The crypto market fluctuations continue to dominate the market while assets like Toncoin and Cardano move away from bearish sentiments. In the past week, most top assets traded sideways after exits recorded by institutional investors in the market. The status quo saw Bitcoin (BTC) price hovering around $61,000 before attempts at a rebound.
Toncoin and Cardano have shown promise ahead of the market outpacing top crypto assets by market capitalization. At press time, the market cap slumped 1.42% to $2.29 trillion with Bitcoin and Ethereum posting 24-hour losses. Major drivers of TON and ADA prices are bullish on-chain factors and key industry developments.
Toncoin Leads Asset Gainers
Toncoin soared 4.5% in the last 24 hours, leaving the wider market in the dust and adding to its recovery numbers. In the last seven days, TON moved up 8% wiping out previous losses. While most monthly numbers dropped for most assets, TON continued to soar hitting 22%. The asset flipped Dogecoin to become the 8th largest crypto by market cap inching closer to a new all-time high.
TON price stands at $8.05 taking its market cap to $19.8 billion while volumes are up 57% today. Last month, Toncoin tapped a new all-time high at $8.24 and remains 2.37% behind the mark. With rising bullish interest, some users expect the asset to break that level.
Toncoin recorded traction as Kazakhstan exchanges began trading the asset following regulatory approval. Similarly, Pantera Capital also increased its investment in Toncoin.
Cardano Attracts Growth
The community dubbed ETH killer jumped 3.5% to trade at $0.418 pushing its market capitalization to $14.9 billion. Weekly numbers were up 6% while daily trading volumes saw a slight increase. Overall, ADA’s recent bullish following anticipated network upgrades and a rise in on-chain volumes. The asset is tipped by bulls to breach the current resistance level despite market fluctuations.
Also Read: Why Are Ethereum Institutional Products Depleting Before ETF Launch?
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Altcoin
SEC Could Approve First US Ether ETFs by Mid-July: Bloomberg
![](https://coin2049.io/wp-content/uploads/2024/06/ethereum_etf.jpg)
The U.S. Securities and Exchange Commission (SEC) may soon approve the first American Ethereum ETFs. Asset managers remain hopeful for a decision by mid-July, even as the deadline for updated submissions has been extended to July 8. This development could mark a significant milestone following the enthusiastic reception of the U.S. spot Bitcoin ETFs earlier this year.
SEC Nears Approval for First US Ethereum ETFs
The SEC’s recent interactions with Ethereum ETFs applicants suggest a constructive dialogue, with the latest round of feedback involving only minor queries. In May, the commission had already approved an exchange proposal to list these products, signaling forward momentum. However, actual trading cannot commence without a separate, subsequent approval.
Financial giants like BlackRock Inc., Fidelity Investments, 21Shares, and Invesco are among those awaiting the green light for their Ethereum ETFs. While many details, such as fund fees, remain undisclosed, the anticipation builds on whether these Ether portfolios will mirror the demand seen in January when U.S. spot Bitcoin ETFs attracted $52 billion in assets.
Also Read: Robinhood Plans to Introduce Crypto Futures In US and Europe Very Soon
YieldMax Seeks SEC Nod for Ether ETF
YieldMax has recently joined other firms seeking SEC approval for an innovative Ether-based product. Their proposed Ether Option Income Strategy ETF, intended for listing on the NYSE Arca, employs a synthetic covered call strategy designed to capitalize on the volatility of underlying Spot Ethereum ETFs. This approach aims to generate profits and provide additional income and risk management for investors through the sale of call options.
Meanwhile, firms like Franklin Templeton and VanEck have already disclosed their ETF fees, which are competitively set at 0.19% and 0.20%, respectively. This transparency could set a precedent for others in the sector, aligning with investor expectations for clear and upfront cost structures.
As the SEC review process continues, the market response has been mixed. Ethereum price has recently declined, dropping about 1.48% to $3,411.87, although it has risen by 50% this year. The cryptocurrency sector’s volatility remains critical for potential investors and regulatory bodies.
Also Read: Tether Inks MoU With BTguru to Boost Crypto Freedom in Turkey
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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