Bull Run Aftermath: Most Dead Cryptocurrencies Traced to Projects Begun During Crypto Boom
Crypto Market's 2 Trillion Dollar Loss and the Fallout
In recent months, the cryptocurrency market has experienced significant turmoil, losing over 2 trillion dollars in value since its peak last November. This has led to the demise of numerous cryptocurrencies. According to CoinGecko, a cryptocurrency data analytics firm, the majority of these defunct cryptocurrencies originated from projects launched during the latest bull run.
Devastating Impact on Bitcoin and Ethereum
Even well-established cryptocurrencies have been hit hard by the market downturn. Bitcoin, the world's largest cryptocurrency, has lost more than half its value since November. Ethereum, the second-largest cryptocurrency, has also suffered significant losses, dropping by over half since its peak.
Reasons for the Mass Demise of Cryptocurrencies
Several factors have contributed to the high number of dead cryptocurrencies originating from recent projects. One key reason is the rapid proliferation of new cryptocurrencies during the bull run, many of which lacked a solid foundation or viable underlying technology.
Additionally, the market hype and speculation that characterized the bull run led to unrealistic expectations and unsustainable valuations for many cryptocurrencies. When the market turned bearish, these projects were unable to sustain their value and ultimately collapsed.
Lessons Learned for Investors
The mass demise of cryptocurrencies during this downturn serves as a cautionary tale for investors. It highlights the importance of conducting thorough research and investing only in projects with strong fundamentals. Investors should also be aware of the risks involved in investing in any cryptocurrency, even during periods of market growth.
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