The Value of Cryptocurrency

Recent research from AItIndex shows that the vast majority of cryptocurrencies have little value. The analysis, which looked at 9,861 digital currencies, found that 9,525 (96 percent) are worth less than $1. Of those, 8,443 (85 percent) are valued at under 1 cent. According to data from CoinMarketCap, however, the top five make up 82 percent of the market’s value. These five currencies (Bitcoin, Ethereum, Tether, BNB, and Solana) have a combined value of $1.78 trillion as of last week, with Bitcoin, the largest and most expensive, accounting for just over half (52 percent) of that value.

Cryptocurrency boomed in 2022, and since then, the total number of cryptocurrencies has fluctuated between 8,500 and 10,000. Often this number will increase after a crypto bull run, as it did during the first six months of 2024. Additionally, advancements in blockchain technology have allowed anyone to start a cryptocurrency of their own. This, paired with Initial Coin Offerings (when companies sell investors a new digital token or currency) and the hype and speculation new currencies generate, has enabled the digital currency market to explode. Though many founders of new cryptocurrencies hope theirs will be the next Bitcoin or Ethereum, the data indicates this is unlikely.