With each passing day, new crypto tokens are consistently springing up on the scene. As the crypto market is moving towards more and more saturation, are all the new crypto projects going to survive? With almost the same services provided by most of the tokens, the case does not seem very likely.
Talking to BlockPublisher regarding whether cryptos will survive the trials of time, crypto analyst Eric Thies stated:
So, think about businesses outside of crypto…. about 90% of startups ‘fail’. And those were legitimate businesses. Crypto has businesses and scams that aren’t legitimate. So, 90% failure rate would be the absolutely minimum I’d realistically expect.
For the new incomers of the market, seeing a plethora of cryptos floating around is kind of discomforting. Which one to invest in remains largely a risky question. Every currency boasts itself as game-changing. As Eric stated:
There’s 2000 currencies so plenty of ‘promises’ out there by these dev teams.
The uncertainty associated with each crypto is very high. As suggested by many experts of the game, only those currencies are going to survive the test of time which present a strong use-case to the market. As more and more developments are made in the world of cryptocurrencies, those candidates who have an already established user base or present a very strong use-case in a real-world scenario are likely to persist.
Major spearheads in the form of Bitcoin and Ethereum have more chances of getting accepted on a large scale than the smaller ones in the game.
One of the major reasons holding cryptos back from evolving is also the prevalence of illegal and manipulative practices. As some of the projects springing up on the scene present viable solutions to actual real-world problems, a majority of them are scams. Such projects hurt the credibility of the crypto market as a whole and lead to less trust among the general public.
The survival of cryptos as a whole is a two-layered process. Firstly, there is a need to develop acceptance among the general public regarding the volatile world of cryptocurrencies. As more and more people and investors start trusting this ecosystem, the market will drive itself towards more growth and stability. Secondly, if the acceptance of cryptos become large-scale in the coming time, each project that springs up will need to provide a strong use-case, otherwise, the chances of its survival are bleak. Now, as time passes by, it remains to be seen which crypto will see the daylight and which will not.