As the cryptocurrency sector matures, new digital assets are emerging to leverage blockchain technology’s diverse uses. With the industry mostly bullish over the last 12 months, newly created cryptocurrencies have spiked significantly.
Data presented by Crypto Parrot indicates that there were 3,531 new cryptocurrencies added to the Coinmarketcap.com database between March 2020 and March 2021. The number represents a growth of 67.94% from March last year when the figure stood at 5,197.
As of March 2019, the number of cryptocurrencies was 2,106, a growth of 35.17% from 2018’s 1,558. In March 2017, there were 649 digital assets to represent a growth of 1,244.83% over the last five years compared to the current total of 8,728 assets.
Main factors behind the surge in new cryptocurrencies
The significant growth of newly created digital assets in the last 12 months correlated with a period when the cryptocurrency sector was mostly bullish. Across 2020, the traditional market crashed to historical lows but later recovered, with the cryptocurrency sector remaining resilient, led by Bitcoin.
Additionally, the bullish trend was inspired by the entry of institutions into the sector. The investment potentially means that cryptocurrencies are on the path to mainstream adoption. This potential for mass adoption might have inspired the creation of new assets.
At the same time, Bitcoin hit the new all-time highs. The bullish trend meant that cryptocurrencies were gaining traction and therefore held the potential for massive returns; hence new projects entered the ecosystem.
The value gained by assets like Bitcoin over the years is an inspiration for new projects that seek to ride on the wave with the hope of maximum returns. Unfortunately, the emergence of some new cryptocurrencies during a bullish rally has turned out to be scams aiming to profit illegally.
Decentralized Finance (DeFi) boom
Over the last 12 months, the increased adoption of cryptocurrencies ushered in a Decentralized Finance (DeFi) boom. DeFi projects emerged leveraging the blockchain technology geared towards disrupting the traditional finance sector. Typically, a new DeFi project comes with its native currency upon which network transactions are based. The more the DeFi projects, the more assets enter the market.
Notably, the majority of DeFi projects are built on host platforms like Ethereum. The ease of a readily available host makes it more convenient for new tokens to launch since they save resources. Similarly, the rise of Initial Coin Offering in 2017 resulted in the significant growth of new assets as of March 2018.
Crypto forks and the emergence of new assets
Cryptocurrency forks have also potentially contributed to the emergence of new digital assets. Although crypto splitting scenarios were not common over the last 12 months, they contributed to the emergence of new assets in the previous years.
Historically, Bitcoin forks have led to the creation of at least four cryptocurrencies. On the other hand, forked cryptocurrencies are also responsible for new assets. For example, Zcash led to Zclassic (ZCL), and then a twin fork between ZCL and Bitcoin led to Bitcoin Private in 2018.
With new cryptocurrencies launching, the focus is now on their role in advancing the financial world. While some digital assets are created as speculative tools, others focus on mainstream adoption and seek solutions for real-world problems. However, only cryptocurrencies with a strong use case will potentially survive.
Electronics Retailer Newegg now Accepts Dogecoin As Payment
After debuting Bitcoin payments back in 2014, online electronics retailer Newegg added a Dogecoin payment option.
American online electronics retailer Newegg has added Dogecoin (DOGE) as an official payment method amid the ongoing parabolic surge of meme-based cryptocurrency.
Newegg announced Tuesday that the company added the option through the crypto payment platform BitPay.
The firm said that the new feature was introduced in conjunction with Doge Day — a community crypto holiday pushed by DOGE proponents to be celebrated on April 20. According to online reports, Dogecoin advocates apparently hope to see DOGE hit $1 today.
Newegg’s senior brand manager Andrew Choi said that the growing momentum around cryptocurrency is “undeniable.” “The recent surge in Dogecoin value underscores the need to make it easier for customers to make purchases with this popular cryptocurrency,” he noted.
Newegg became one of the first major online shopping stores to accept Bitcoin (BTC) when the company partnered with BitPay back in 2014. Initially debuting the feature in the United States, the firm subsequently expanded the payment option to more than 70 countries.
“We’re committed to making it easy for our customers to shop however works best for them, and that means letting them complete transactions with the payment method that suits them best. To that end, we’re happy to give Dogecoin fans an easy way to shop online for tech,” Choi stated.
Newegg’s move into Dogecoin payments comes amid a catapulting DOGE price rally, with the altcoin gaining more than 480% over the past seven days at the time of writing. On April 19, DOGE market capitalization hit $50 billion for the first time in history, with the token hitting an all-time high of $0.45.
Soaring Demand Drives Gold-backed Cryptocurrency Listing
A gold-backed digital asset has been added to one of the world’s largest financial advisory and fintech organisation’s cryptocurrency app.
deVere Group added Pax Gold (PAXG) to deVere Crypto to join other major digital currencies including Bitcoin, Ethereum, Dash, Cardano, Bitcoin Cash, XRP and Dogecoin.
Each PAXG token is backed by a piece of London Good Delivery gold bar, kept in Brink’s gold vaults, which is the approved storage company of the London Bullion Market Association.
The addition of Pax Gold on the deVere Crypto exchange comes a day after Bitcoin, the world’s largest cryptocurrency by market capitalisation, fell as much as 15% just days after hitting a new record high of $64,000.
Nigel Green, CEO and founder of deVere Group, says: “We have added Pax Gold, an established cryptocurrency that is entirely backed by gold, due to ongoing and increasing client demand for digital assets.
“Pax Gold offers investors the liquidity, flexibility and security of a blockchain-based cryptocurrency, together with the reputation and credibility of a valuable physical commodity.”
He continues: “The booming crypto market is known for being volatile. Many investors like the volatility as it can provide highly rewarding buying and selling opportunities.
“However, the market ups and downs aren’t for everyone. Pax Gold will appeal to investors who want to have exposure to digital assets – which are increasingly regarded as the future of money – without the higher levels of volatility.”
Launched in 2018, deVere Crypto is a pioneering app on which users can buy, sell, hold and exchange major cryptocurrencies. Digital assets, which are established and qualified by experts, are often added as the market develops. This year, Cardano, Dogecoin and now Pax Gold have been included.
Mr Green recently noted: “Crypto is a burgeoning asset class and it’s one that is set to play a larger and larger role within the global financial system.
“In today’s digitalised, globalised world, the demand for digital, global currencies in some form – is only set to grow.
“From now on, there will always be widely-used non-fiat money.”
The deVere CEO concludes: “We’re delighted to be able to now offer Pax Gold, which gives investors an easy and safe way to have exposure to real, regulated gold.
“This highlights our commitment to providing clients the opportunities and rewards of digital currencies.”
SEC Working With CBN On Crypto Trading Regulation, Says DG
The Director-General, SEC, Lamido Yuguda, said this at the 2021 first post-Capital Market Committee (CMC) virtual news conference.
Mr. Yuguda said the commission was in discussion with the CBN for a better understanding and regulation of the crypto assets.
He said the commission suspended the implementation of crypto assets guidelines due to a lack of access to Nigerian bank accounts.
“We are in discussion with CBN for both understanding and better regulating of this market.
“We will be able to come back to you later to inform you of the outcome of these engagements.
“But because of the lack of access to commercial bank accounts, we had to suspend our own guidelines of September 2020, the implementation of that circular is suspended until these operators are able to have access to Nigerian bank accounts.
“Remember that nobody operates in the Nigerian capital market if that person does not have access to a Nigerian bank account,” he said.
Mr. Yuguda, however, said that SEC remained very supportive of Fintechs and had invested so much in developing a framework to support their operations.
The comments followed last week’s declaration by the SEC that fintech allowing Nigerians access to foreign securities were operating illegally. Examples of those platforms are Bamboo, Rise vest, and Chaka.
“Let me say that the SEC remains very supportive of fintech. We have invested so much in developing a framework for supporting fintech in the various areas and fintech are acting in areas of crowdfunding, investment advice and cryptocurrencies and the like,” he said.
Mr. Yuguda said that the market had been disrupted by the apex bank prohibition on access to Nigerian bank accounts by the crypto exchange.
“In all other areas, nothing has changed, but in the area of crypto assets, you know that with the recent prohibition by the CBN on access to Nigerian bank accounts by crypto exchanges, that market has been disrupted.
“And the truth of the matter is that while the SEC had issued guidelines in September 2020 aimed at regulating this market, for now for all intents and purposes, because these exchanges do not have access to commercial bank accounts in Nigeria the market, for now, does not exist,” he said.
According to him, the commission recognises the impact of FinTechs on capital market activities.
He assured the public that SEC would remain accommodative of this development.
“We shall continue to engage players and support them to operate lawfully.
“Our aim is to ensure the delivery of safe products and services without stifling innovation,” Mr Yuguda said.
He, therefore, encouraged FinTech firms to approach the Commission for due registration and desist from operating illegally.
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