Over 19,000 cryptocurrencies and dozens of blockchain platforms currently exist, CNBC estimated. Yet, some crypto firms are pessimistic about the future of digital assets.
Thousands of tokens are likely to collapse and the number of existing blockchains to fall over the coming years, some crypto industry players suggested.
Bitcoin and Ethereum are the most viable blockchain platforms today. Ethereum is a platform that many cryptocurrencies are built on. However, most digital assets are now under tremendous pressure. In the early summer, BTC plunged by 50% from its all-time high hit in November 2021. Other altcoins followed suit and also fell from their historic peaks.
The crypto community is now concerned that thousands of digital currencies might not survive. The issue came into the spotlight after the recent collapse of stablecoin Terra USD and its associated digital token Luna. One of the reasons why Terra crashed is that there are far too many blockchains and tokens in the crypto market, which confuses users and brings certain risks to them.
Many experts are sure that most cryptocurrencies will soon become history. It remains to be seen which of them will stay. Guggenheim Chief Investment Officer Scott Minerd believes that bitcoin and ethereum would survive, which is likely as many different blockchain platforms are now competing for leadership in the crypto industry.