Re Bitcoin: "The survival rate of cryptocurrencies is low" (here is the data)
Bitcoin, Ethereum (ETH), Ripple (XRP), Monero (XMR) are the headline grabbers for crypto
(there are others of course, forgive me if i have left out your favourite).
But what about all the lesser known?
Coinmarketcap surveyed the field, using data going back to April 2013. It found:
- more than 860 defunct cryptocurrencies, which is around 40% of them
And, that number does not account for the many more cryptocurrencies that failed to launch after their initial coin offering (ICO)
- The average lifetime of defunct cryptocurrencies is around 327 days
- Average lifespan of surviving cryptocurrencies is around 513 days
How does BTC impact on smaller cyrptos?
- In March 2016 bitcoin fell around 25%
- This triggered a surge of cryptocurrency extinctions
Is it just tiny cryptos that fail?
Well, no. Some of the failures had achieved quite high valuations. For example:
- ROUND had a peak market capitalisation of 193 million USD
- DAO coins hit USD $160m
Any comments from ForexLive traders on this? On the face of it the failure of some coins (a huge proportion) should impact to boost the valuation of those that survive, even more those that thrive.