Is the crypto market saturated?

[Abiky]

According to CoinMarketCap, there are 6,588 cryptocurrencies being traded on the market right now. Almost every day we see new ambitious crypto projects being listed on major crypto exchanges, but only a select few are useful for the mainstream world. We already have Bitcoin and Ethereum, which are the most prominent cryptocurrencies on the market. Most (if not all) cryptocurrencies' code are based on either the Bitcoin or Ethereum blockchains. If we put aside additional features and base ourselves on the core blockchain protocol, then Bitcoin and Ethereum may be the only cryptocurrencies humanity needs to participate in the decentralized economy. I think that there are way too many cryptocurrencies and tokens on the market these days, considering that not everyone uses all of them for daily payments. Some developers launch new cryptocurrencies with no real use cases for the mainstream world just to make a quick buck.

Do you think the crypto market is saturated? If not, why? Your input will be greatly appreciated.

[1715322080]

1715322080

[1715322080]

1715322080

[logfiles]

Do you think the crypto market is saturated? If not, why? Your input will be greatly appreciated.

I don't think it's saturated. At the end of the day almost over 3/4 of the coins and tokens on Marketcap are struggling to even have a decent 24-hour trading volume and as time goes on most of them get delisted from prominent exchanges and die a natural death as traders seek coins or tokens with decent trading volumes or top marketcap coins.

[Oasisman]

Shitcoins will eventually die and coins/tokens with real use cases that has enough trade volumes remains. That's how the crypto market will desaturate normally.
After all these shitcoins, shit projects, and pump and dump coins will only come and go in an instant, and these are the same coins/tokens who keeps saturating the market.
Just like @logfiles said, they will be soon delisted from those exchange. So, that's how market will desaturate normally.

[Mpamaegbu]

Nah! The market is far from being saturated, at least as things stand now. I want more players to come into the crypto industry so as to afford investors variety of choices to make. It amplifiers the axiom: The more, the merrier. Sometimes, I look back to the 2017 year with mixed feelings and how quickly has moved. At the time I joined this forum the CMC had on display around 750 altcoins. The astronomical increase is commendable. This industry is a gold mine and I believe the best is yet to come for it.

[Mahanton]

According to CoinMarketCap, there are 6,588 cryptocurrencies being traded on the market right now. Almost every day we see new ambitious crypto projects being listed on major crypto exchanges, but only a select few are useful for the mainstream world. We already have Bitcoin and Ethereum, which are the most prominent cryptocurrencies on the market. Most (if not all) cryptocurrencies' code are based on either the Bitcoin or Ethereum blockchains. If we put aside additional features and base ourselves on the core blockchain protocol, then Bitcoin and Ethereum may be the only cryptocurrencies humanity needs to participate in the decentralized economy. I think that there are way too many cryptocurrencies and tokens on the market these days, considering that not everyone uses all of them for daily payments. Some developers launch new cryptocurrencies with no real use cases for the mainstream world just to make a quick buck.

Do you think the crypto market is saturated? If not, why? Your input will be greatly appreciated.

98% of them are shit and 2% are actually having that real life usage and i do consider those coins who had been using similar platforms and we know that there are certain projects does have its own
blockchain or shall we say the original ones and the rest are just copying it out without any real-life case usage.Im not saying its saturated but its flocked with lots of shitcoins that are just hoping
for them to get big and made those owners or creators hell of a rich guy.Theres no other reason why we've been flooded by useless coins thats why we should really be careful
on selecting on where we do put or invest our money.

[Wexnident]

Out of the 6.5k shill coins you just stated, I doubt there's even 30 or 40 of them that are useful, and that's a conservative estimate from me. Most of the coins in the market just rode on the crypto name and doesn't really provide anything attractive to it's customers, whether it be in the short term or the long term run. They're just basically there to scam others out of their money in an official way. It'd take a century at least for people to understand that even if you create a crypto coin, it doesn't mean that it would boom just like what happened with Bitcoin. I'd actually even be glad that if after a century, 5% of the total coins that are made are actually useful to the public, that is if I'm still alive by then anyway.

It's also like how the gaming market isn't really that saturated even with a ton of games that have repeated storylines (the overall story anyway). Even if some of them are fun, majority of them are just copy paste of other stories, hence why most are still looking for some that would get them going and make them enjoy the game.

[mk4]

Yes, it is saturated, and yes, it is to be expected. I mean, you can literally fork a project right now and change a few stuff in the code, and boom you have your own cryptocurrency(hence why we see a lot of Bitcoin forks), without even necessarily needing to do some legal stuff.

Also noting that in the current cryptocurrency markets, you don't even need to have fundamental stuff to get people to be interested in your project; all you need is good marketing.

[The Sceptical Chymist]

If we put aside additional features and base ourselves on the core blockchain protocol, then Bitcoin and Ethereum may be the only cryptocurrencies humanity needs to participate in the decentralized economy.

I tend to disagree with that, especially when I think of how many times I've tried to use bitcoin as a currency--or even just to send it to another wallet--when the network is extremely congested and it takes an abnormally high fee just to get the first confirmation.  If bitcoin was the only crypto in existence, that just wouldn't be good IMO.  And ETH is used much less as a currency and more for its smart contract functionality (as far as I know).

But I do think the crypto market is extremely saturated, and I've thought that for a long time.  Even coins that would function much better as currency than bitcoin (Dash, doge, LTC) don't even get used in that capacity.  They're used as trading instruments and/or stores of value, and seeing as how there are over 6500(!) cryptos on the market, I don't think there's nearly enough interest or money to support most of them. 

I'm assuming that 6588 figure includes coins with dead blockchains, like the shitcoins you'll find in the 1-satoshi graveyard on Yobit.  That's where the majority of them are headed IMO, since most don't offer any advantage to anything else on the market and most are just cash grabs by "developers" who copied the code from some other coin.

[Yaunfitda]

It is being saturated by shitcoins, who in the first place has nothing to offer in the crypto sphere. But to clogged the market with the promise of new technology that will solved every human problems possible. And that's how a free market operated, some of them will be dead in a year, but then again another coin popups, rinse and repeat. So we must just pay to some crypto that has really something to bring into the table and not those pump and dump shitcoins. And I believed that it really bring negativity to the whole crypto market in general.

[LUCKMCFLY]

Every day you can generate a cryptocurrency if you want, generating a cryptocurrency with an ERC-20 algorithm is so easy that even a child can do it, what you have to consider in order to have more security is to see in which recognized Exchanges it is and So not run the risk of falling into a possible scam, if we take this into account, it may be that when observing so many cryptocurrencies some type of saturation can be seen, but only the most recognized are those that can have some survival.

Every time more cryptocurrencies will come out, if this is saturation, you should get used to seeing many more in the future, so as not to miss it, it is best to realize that Bitcoin is the currency that commands, all the others obey Bitcoin directly or indirectly.

[exstasie]

I think that there are way too many cryptocurrencies and tokens on the market these days, considering that not everyone uses all of them for daily payments. Some developers launch new cryptocurrencies with no real use cases for the mainstream world just to make a quick buck.

Do you think the crypto market is saturated? If not, why?

Sure, I'd say there are too many coins and too many exchanges.

Tokens as a fundraising mechanism are really not so different from IPOs and other investment offerings. There is a lot of trash in the ICO space to be sure, but I especially don't like to lump security tokens in with altcoins in terms of market saturation because they are literally just a substitute for stocks. Eventually we will see Fortune 500 companies tokenizing their stocks too. That's where I see things heading eventually, which is why it makes no sense to lump them in with proof-of-work cryptocurrencies.

I view the altcoin market like the startup space in general: high risk, high reward.....and most projects will fail.

[Sanitough]

Being saturated with bad projects, yes, so we need more good projects as there's still plenty of rooms to grow. Based on what I read in different articles in the past, it stated that 90% of the total market are filled with bad projects or projects that will likely to fail in the short term or long term because it has no potential, so that says it's saturated with bad projects.

I would love to see more good projects if we are looking on how people will benefit when massive adoption happens or needed it to gain massive adoption.

We need more altcoins and it doesn't matter if such projects could be repetitive or having the same idea with the other existing projects as long as it's legit as that would create a good competition among each other in the market.

[traderethereum]

I don't think the crypto market is saturated because every developer wants to make money from their project, so we will see another moment for the new project to launch.
The new project with a different point of view will always come up to the market, and the project trying to convince the public that their project will be different than the other project.
But the point will be the same, and we don't know which project will end to scamming the people because we will hard to know that.
The new project will be the way to make a quick buck as soon as the trend replaces with the new trend, and that will be like that.

[mindrust]

People tried to implement a blockchain solution to almost every life situation there is.

Be your own Bank	✓
Decentralized Casino	✓
Decentralized Exchanges	✓
Payment System	✓
Decentralized Social Media	✓
Unfakeable ID's (selfkey etc)	✓
Decentralized Finance	✓
Smart Contracts	✓
Supply Chains	✓

Anything I forgot?


Not let's think, how many of those actually have any real life usage or really work as advertised...

Be your own Bank	✓ (works with bitcoin so far but still way too volatile to hold big amounts)
Decentralized Casino	✗ (won't work because the input is centralized - for sports)
Decentralized Exchanges	? (not really decentralized when FIAT is involved)
Payment System	? (can't handle the world demand in a non-complicated way
Decentralized Social Media	? (can work in theory but you wouldn't want it becuz cp)
Unfakeable ID's (selfkey etc)	✗ (scam)
Decentralized Finance	? (most likely another scam or won't work as advertised)
Smart Contracts	✓ (can work but i don't see high interest)
Supply Chains	✓ (can work in theory)

Conclusion:

It is pretty damn saturated.

[exstasie]

Not let's think, how many of those actually have any real life usage or really work as advertised...

Conclusion:

It is pretty damn saturated.

To be fair, aside from the obvious outright scams, there hasn't been adequate time to judge. In cutting edge technologies, startups raise money for years before releasing final, stable products that work at scale.

And the fact of the matter is this: 90% of new startups fail. That is the closest analogy for what coin developers and token issuers are doing and I would think the same statistics generally apply. I'm not sure if that translates to market saturation exactly, more so that most crypto projects were destined to fail in the first place.

[bitgolden]

I do not really care about what is going on with the other smaller ones, you think they are traded and somehow cared for but some of them are listed at DEX places and have under 10k dollars traded daily. When a project gets under 10k dollars per day, it means they are not really big and not really cared at all, this is why I believe it worths absolutely zero to me and I do not even consider them a coin or a token.

After that you will realize there is a lot less coins left, probably just 100-200 coins traded above that liquidity level, and I can tell you that only the first 50 or so actually matters to community because the others are just passion project of a person that went viral but they could still die, however the top 50 or so is really good, even though there is a chance they could go down as well, it is lower and most of the time the only coins that matters. So, all you can do is ignore the coins that you see like that, most of them should be ignored and not cared for anyway.

[gentlemand]

The saturation has only just begun. The 'Bitcoin killer' narrative will never die and there'll always be someone who's stupider and greedier than the last bunch who were fleeced.

I expect there'll be blue chip coins and exchanges and an absolutely bottomless morass of shit below with untold numbers of exchanges and shitcoins humming away in dark corners.

When you look at what's top 10, let alone below, we have a long way to go to purge the blatant crap but the day will come and most will barely pay any attention to the tens or hundreds of thousands of projects that'll never get anywhere.

I've kind of already reached that point. I can no longer be arsed to research defi or whatever the latest hype is. I'll stick with what I know.

[exstasie]

The saturation has only just begun. The 'Bitcoin killer' narrative will never die and there'll always be someone who's stupider and greedier than the last bunch who were fleeced.

I find Bitcoin maximalists who don't understand this hilarious. Altcoins are never going away, and they will always bubble during a Bitcoin bull market, just by virtue of the potential gains and greed involved. Such bubbles are inevitably rationalized with narratives like "Bitcoin killer" and "Satoshi's vision" and all that.

Strong bull markets are all about human psychology and have very little to do with underlying fundamentals. Fear of missing the boat is an incredibly powerful force. In the context of a risk-on bull market where BTC is reliably holding its value, all it takes is a few altcoins pumping to build a state of hysteria and to begin driving a massive bubble in altcoins. It happened in 2013, it happened in 2017, it'll happen again the next time the Bitcoin market froths up. Not a doubt in my mind.

It's getting increasingly crapshoot-like to bet on micro caps due to the saturation in the market, but even so, there will be plenty of 1,000x and even 10,000x moves to be had, so it's all about what your investment style is. There will be very reliable gains in mid caps and above no matter what though, in my opinion.

I can no longer be arsed to research defi or whatever the latest hype is. I'll stick with what I know.

At some point in the bull cycle, every possible altcoin still listed on exchanges pumps. No knowledge required. You just look for anything that hasn't pumped yet, and buy. That's when I like to be involved in the altcoin market.

[gentlemand]

At some point in the bull cycle, every possible altcoin still listed on exchanges pumps. No knowledge required. You just look for anything that hasn't pumped yet, and buy. That's when I like to be involved in the altcoin market.

That's very true. Selecting every random three letters and expecting the best no doubt works if you do it at the right time but I have to retain some self respect.

I think next time around the alt bubble will be an order of magnitude more insulting which is really saying something. Bitcoin will be more 'too expensive' than ever.

[crzy]

Do you think the crypto market is saturated? If not, why? Your input will be greatly appreciated.

Most of the shitcoins are dying now, and not all cryptocurrency can last longer so I think we are still on a healthy market and not yet saturated. Though, there's a lot of new cryptocurrency sooner or later they will fade away easily and those who made a good service and technology will remain standing and keep pushing until they reach many people through their services. If we'ere saturated, the the market should go lower than expected because of many supply in the market, fortunately not yet.