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 started surging, reaching an all-time high of more than 6,000 in July.
According to data presented by BlockArabia.com, although the total number of digital coins slipped to around 5,900 since then, this still represents a massive 47 percent increase YTD.
Almost 2000 New Cryptos in 2021 Only, the Highest Annual Increase so Far
The large increase in investors’ appetite has been one of the major drivers of the growth seen in the crypto market. In 2017, the market capitalization and the number of market participants in the crypto space saw record-breaking growth rates. At the same time, cryptos were backed by government institutions which legitimized them as investment assets.
The total number of crypto coins and digital assets on exchanges more than doubled that year, rising from 644 to 1,335, revealed the CoinMarketCap and Investing.com data. By the end of the first quarter of 2018, more than 300 new digital coins entered the market, with their total number rising to 1,658.
However, that was just the start of the impressive growth. Statistics show that by the end of 2019, the number of cryptocurrencies circulating in the market jumped by 70% to 2,817 and continued rising.
2020 also witnessed an impressive annual increase of new cryptos, with their total number rising to around 4,000 by the end of the year.
The Investing.com and CoinMarketCap data show almost 2,000 new digital coins entered the market in 2021 only, the highest annual growth to date.
Global Crypto Market Cap Almost Tripled in 2021, Dogecoin and Cardano Witnessed the Biggest Growth
Besides a huge number of new digital coins, the global crypto market also witnessed an impressive market cap increase this year. The CoinMarketCap data show the combined value of all digital coins circulating in the crypto space almost tripled since the beginning of 2021, jumping from $776B to over $2.1trn last week.
The most expensive digital currency globally, Bitcoin accounts for 43% of the global crypto market cap. Statistics show the combined value of all Bitcoins stood at $912.6bn at the end of last week, almost a 70% increase YTD.
Ethereum, the second-largest digital coin in the crypto space, saw almost five times bigger growth, with its market cap surging by 348% YTD to $375.5bn. However, this was still much less compared to some other cryptocurrencies.
The seventh-largest crypto by market cap, Dogecoin, was the fastest-growing digital coin in the crypto space this year. Statistics show its market cap soared by more than 6,000% YTD to $36.8bn.
Cardano witnessed the second-largest growth in 2021, with its market cap surging by 1,500% to $91.7bn in this period. Binance Coin follows with a 1389% YTD growth and a market cap of nearly $82bn.
Bitcoin Bulls Run Amok: Short Traders Hit with $90 Million Loss Amidst Unstoppable Surge
The relentless surge in Bitcoin’s prices has left short traders reeling as highly leveraged futures bets against the cryptocurrency incurred losses totaling $90 million on Tuesday alone.
This follows an additional $70 million in short liquidations on Monday, contributing to Bitcoin’s remarkable climb from $39,000 to $44,000 this week.
According to data from CoinGlass, most of these liquidations transpired on major crypto exchanges, including Binance, OKX, and Huobi.
The substantial liquidation figures have the potential to signal either a local top or bottom in a significant price movement, providing valuable insights for traders looking to strategically position themselves.
The surge in trading volumes, up by 25% in the past week, coupled with the growth in open interest from $17.2 billion to $20.2 billion since the beginning of December, underlines the increased market activity around Bitcoin.
Several factors are contributing to Bitcoin’s recent growth. Optimism is swirling around the potential approval of a spot exchange-traded fund (ETF) in the U.S., with traders factoring in anticipated rate cuts, buoying riskier assets like technology stocks and Bitcoin.
Additionally, the possibility of sovereign adoption is gaining traction as leaders in major economies express a Bitcoin-friendly stance.
Over the weekend, a notable group of traders committed to a $200 million BTC futures position, emphasizing the sustained demand for exposure to Bitcoin.
Amid continuous updates and changes in spot ETF applications, some industry observers foresee Bitcoin prices surpassing the $48,000 level in the coming weeks, further intensifying the cryptocurrency’s bullish momentum.
Dogecoin (DOGE) Rides Bitcoin Surge, Gains Over 10% in 24 Hours
The cryptocurrency market is witnessing a resurgence of risk appetite as more investors jump on unconventional choices such as Dogecoin (DOGE), Shibacoin, Memeland, etc.
In the past 24 hours alone, DOGE has surged by over 10% to $0.10 a coin for the first time since April following Bitcoin’s climb from $38,000 to $44,000.
This surge, coupled with the rising price, validates the upward trajectory of DOGE, signaling growing investor interest.
Funding rates on various exchanges have also experienced a substantial surge, hitting an annualized 50% or more.
These rates, reflecting a steep premium in perpetual futures relative to spot prices, indicate a prevalent bullish sentiment among investors.
It underscores their collective optimism, suggesting a belief that prices are poised for further upward momentum.
Joke cryptocurrencies like DOGE have historically exhibited high-beta characteristics, closely mirroring Bitcoin’s movements but often with greater intensity.
Investors are advised to exercise caution and monitor DOGE’s potential for extreme bullish action relative to Bitcoin, serving as a potential indicator of speculative exuberance typically observed in the latter stages of a widespread bullish trend.
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