Altcoins may face imminent mass consolidation
- Industry experts at the Delta Summit see a squeeze in the Altcoin market.
- Bitcoin is dominating around two-third of digital coins supply.
- Mass consolidation could also see the evaporation of many projects.
"Extinction Rebellion" is one of the movements fighting climate change – but Altcoins' attempt to rebel may be futile. FXStreet's Tomàs Salles is attending the Delta Summit in Malta and reports about a growing notion that the number of cryptocurrencies will significantly fall.
Andy Cheung, Head of Operations at OKEx, says that projects that have failed to reach a critical mass may reach the end of the road sooner rather than later. His views are shared with several other prominent industry leaders.
No fewer than 2,940 crypto projects are currently listed on CoinMarketCap. Bitcoin is worth around $146 billion, Ethereum around $18 billion, and Ripple just over $10 billion. Tron, which has enjoyed a surge of late, is worth less than $1 billion and is located in third place. Overall, the total market cap of all the coins and tokens listed on the website stands at around $217. Bitcoin, the granddaddy of cryptos, is worth around 67% of the market.
Source: coinmarketcap.com
It is essential to stress that some projects may have a brighter future than others. Ethereum, which powers several ventures, may consolidate its power and emerge stronger. Ripple, whose technology is used for transactions, may morph into a successful blockchain company – but perhaps lose its prominence as a cryptocurrency.
Other projects down the line may rise or fall on adoption – which may become the key to success. It may replace wild speculation as the prominent driver of prices.
Author
Yohay Elam
FXStreet
Yohay is in Forex since 2008 when he founded Forex Crunch, a blog crafted in his free time that turned into a fully-fledged currency website later sold to Finixio.
