Decrease in New Token Applications Indicates A More Mature Crypto Industry

02/16/2023 15:17 • Metaverse Matters • 127 views

On February 16, according to CoinMarketCap data, the number of new Token applications has dropped from 10264 in the first quarter of 2022 to 6350 in the fourth quarter. So far this year, there are only about 3000 new Token applications.

Data: The number of new Token applications for CoinMarketCap has declined for four consecutive quarters

Analysis based on this information:

The decreasing number of new Token applications in the cryptocurrency industry for this year could be a key indication of a more mature and sophisticated digital environment. According to the CoinMarketCap data, the number of new Token applications has dwindled to about 3000 this year, which is lesser compared to the early quarters of 2022.

There could be several reasons behind this drop in new Token applications. Firstly, the increasing scrutiny of regulatory authorities globally over the ICO (Initial Coin Offering) model of fundraising could be a key factor. The numerous scams and fraudulent activities by new ICOs have led to regulatory pressure on the crypto industry. The growing number of fraud activities has led to the tightening of regulations in multiple jurisdictions, leading to a drop in the number of new Token applications.

Secondly, the growing dominance of centralized exchanges in the crypto industry could be another potential factor. An increasing number of token projects are now being launched on centralized exchange platforms, which leads to a slower rate of new Token applications registered on coin aggregator sites like CoinMarketCap.

Lastly, the overall maturity of the crypto industry could be playing a key role in the decrease of new Token applications. The majority of old players in the industry have developed and launched their own blockchain and decentralized applications. The existing crypto projects are now fighting for mainstream adoption by leading retailers and financial institutions, which requires more sophistication and less reliance on ICO’s model of fundraising. It is possible that existing players are finding other methods to raise funds or taking a more organic approach to developing new tokens rather than indulging in the ICO model.

In summary, the decrease in new Token applications in the crypto industry is a sign of maturing in the industry. The regulatory actions, the dominance of centralized exchanges, and the increased sophistication of the industry could all be major factors that contribute to this trend.

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