How to find promising altcoins in a saturated cryptocurrency market

How to find potential altcoins in the saturated virtual currency market? The saturation level of copycats has skyrocketed. But how serious is it? I read CoinGecko’s latest report to find out. "In a sea full of opportunities, investors are eager to obtain high returns." Today, the editor of this website will share with you a detailed strategy on how to find potential altcoins in the saturated virtual currency market. Friends who need it can read it together. Look!

How many cryptocurrencies are there?

In 2024, there will be more than 2.5 million cryptocurrencies, an increase of 5.7 times from 440,000 in 2021. By the end of 2022, this number will reach 1.15 million, a year-on-year increase of 159.2%; by the end of 2023, this number will further increase to 1.98 million, a year-on-year increase of 72.3%.

Number of new tokens:

As of early April 2024, more than 540,000 new tokens have been created, with an average of 5,300 created per day . Starting in 2023, this ratio has exceeded half of 830,000 new coins.

Meme Coin Seasonal Effect:

May 2023 set a record with 104k tokens issued, but March 2024 hit a new high with 196k.

These surges highlight the dynamism of the meme market, where thematic and derivative tokens are emerging at a rapid pace.

What is driving this saturation?

GCR believes one potential reason is to imitate successful projects. In this fast-moving industry, success breeds imitation, which leads to a flood of derivatives being quickly created in pursuit of higher returns.

How to find direction in a saturated market?

As saturation increases, screening altcoins becomes critical. Every week, it becomes harder and harder to find quality projects in a crowded market.

@0x_Kun proposed 5 criteria:

• Grand narrative
• Increase user base
• Strong community
• Low unit bias
• Clear value

Don’t get too attached to the tokens you hold

Winning the pick does not guarantee success. Many people lose profits by getting too attached to the tokens they hold. During 2020-2021, 70% of the 11,000 tokens listed failed. Similarly, during 2017-2018, 70% of over 3,000 tokens failed.

Final Thoughts

Despite the rapidly saturated market, opportunities still exist for people who are smart and work hard.

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