2018 has been the start of a bear market when the majority of the cryptocurrencies dropped about 80 to 90 percent. This resulted in the loss of over $700 billion from the total market capitalization. However, the year also saw an influx of about $5 billion in terms of added supply from newly minted coins.
According to the latest Diar research, the start of this year saw an additional supply of about $5 billion from newly minted coins and new tokens.
The global crypto market got an uplift of more than 12 percent from these newly minted coins along with new tokens that have come into play at the start of this year. The market currently stands “nearly ten times the value they did at the start of 2017.”
According to this Diar report, the new year has been kicked off with the equivalent of $15 billion in additional value from the inflation in new tokens and cryptos compared to the start of 2018.
The majority of this share is from Bitcoin (BTC), Ethereum (ETH), and the newly forked Bitcoin SV (BSV). Moreover, the trend of stablecoins also got the market rolling as $1.2 billion has been added by the dollar pegged cryptocurrencies at the beginning of 2019.
“Supply increases for cryptocurrencies that existed amounted to nearly $4.2Bn at current prices.”
Last year, more than 700 cryptos were added to the market that is an increase of 50 percent in comparison to the increase at 2019 beginning vs 2018. Moreover, overall, the market saw an average 35 percent inflation rate in coin supply increase.
“What does stand out even more as a sore thumb in the midst of a bubble burst was the $5Bn in value that cryptocurrency traders have appreciated in new tokens that did not exist at the start of the bear market – coins that, for all intents and purposes, remain to be no more than additional noise in an overcrowded decentralized promise-land.”
However, what’s pressing is the fact that the new supply that came during 2018 accounted for about the whole market valuation at the start of 2017. But no one has a standout application success story as of yet except those with the transfer of value as their purpose.
The report was concluding with,
“Even that isn't without its scaling issues under development that remain to harness a cumbersome user experience.”