FX.co ★ Bitcoin declines, Shiba Inu collapses, and more than 1,000 new coins appear: how the cryptocurrency market starts in February

In January, the cryptocurrency market generated more than 1,000 new coins. Thus, almost thirty-two new digital projects were created every day of the past month in the market of virtual assets. According to CoinMarketCap, the total number of cryptocurrencies at the end of January exceeded 17,200.

At the same time, the number of virtual assets increased by 99% to 16,200 as of December 31, 2021, from 8,100 as of January 1, 2021. Thus, in 2021, the cryptocurrency market generated 21 new coins daily.

However, not all new cryptocurrencies are destined to top the ranks. Sometimes, even prominent altcoins suddenly lose in value and begin to gradually disappear from news and rankings. For example, in just three months, the popularity of the Shiba Inu coin in a Google search engine collapsed tenfold. In addition, cryptocurrency market experts are confidently talking about the disappearance of the token.

SHIBA's finest hour was the end of October in 2021 when the virtual asset reached the all-time high of $0.000088. Today, the value of the coin is hovering near $0.000020, having lost more than a quarter of the price from the October highs.

However, the developers of the meme-inspired coin are trying to support their brainchild. Recently, the creators began to actively advertise their metaverse called Shiberse, which, according to them, will charm users with high-quality graphics and a large-scale gamer experience.

Another decisive step taken by the creators of Shiba Inu to bring it back to its former glory was the use of the popular cryptocurrency burning mechanism. Every week, a certain number of altcoins are sent to "dead" wallets and completely disappear from the market. Thus, in the last seven days alone, about 332 million crypto assets were burnt.

Large holders of meme-based coins also supported SHIB. The so-called whales are actively buying cryptocurrency.

However, all attempts to save Shiba Inu do little to help the virtual asset. The price continues to decline, and crypto-experts are increasingly talking about the imminent disappearance of SHIB from the global crypto market amid multiple factors of fraud in its creation.

At the beginning of February, Bitcoin is experiencing no less serious problems. According to the Binance exchange, in the past 24 hours alone, BTC has dropped by 5.6% and is trading at $36,410.

Bitcoin is showing a strong bearish trend for the second day in a row. On Tuesday, BTC was trading within the range of $38,000-$39,000.

Bitcoin has not risen above $40,000 since January 21. However, the coin reached $46,000 at the beginning of this year.

At the end of 2021, the main cryptocurrency increased by 1.5 times to $46,200 from $28,900. At the same time, BTC reached an all-time high of $69,000 in November 2021.