The number of cryptocurrencies has surged, with CoinMarketCap now listing nearly 11 million digital assets. While this growth highlights wider adoption and development, it also raises concerns about market saturation.
With thousands of new tokens entering circulation, particularly memecoins, some analysts worry that the sheer volume of cryptocurrencies could make it harder for altcoins to gain momentum.
Why So Many Cryptocurrencies Exist
There are several reasons why new cryptocurrencies keep emerging. One key factor is technological advancement. Blockchain technology has allowed for decentralised, transparent, and secure applications across various sectors. This has led to the creation of crypto projects aimed at industries like supply chain management, healthcare, gaming, and digital identity.
Another driver is the demand for decentralised finance (DeFi). As traditional financial institutions struggle with trust and inefficiencies, more people and businesses are looking for financial solutions that don’t rely on intermediaries. At the same time, NFTs and the metaverse have helped push adoption further, as both rely on blockchain for transactions and ownership verification.
Global economic conditions also play a role. In countries with high inflation or unstable currencies, cryptocurrencies provide an alternative store of value. Meanwhile, institutional investors have increased their involvement in the space, bringing in more capital and credibility. These combined factors have led to a highly active and diverse crypto market.
Source: Coinmarketcap
Currently, there are almost 11 million different cryptocurrency tokens and coins listed on CoinMarketCap, with the count sitting just above 10.99 million.
A significant number of these new tokens emerged in 2024 and early 2025, mainly driven by memecoin launches on the Solana network. Some analysts believe the attention given to memecoins has diverted interest from tech-focused altcoins, which previously dominated speculative investment.
This flood of new tokens has sparked concern among traders and analysts. Some believe that too many cryptocurrencies competing for attention could make it harder for projects to gain visibility, ultimately weakening the market. Market analyst Ali Martinez has suggested that the overwhelming number of tokens could prevent an “altcoin season” from taking place, a period when altcoins typically experience strong price surges.
According to Martinez, there are now over 36 million altcoins in circulation, which is far more than the 3,000 counted in 2018 or the 500 or so in 2013-2014. “The market is very different now with so many coins,” Martinez posted on social media.
Market Conditions and Liquidity Concerns
Despite the increasing number of tokens, the global crypto market remains strong. CoinGecko data shows that the total crypto market is valued at $3.29 trillion, reflecting a 0.87% drop in the past 24 hours but a 75.56% increase compared to a year ago.
Source: Coinmarketcap
Bitcoin (BTC) remains the dominant cryptocurrency, holding a market cap of $1.92 trillion, which accounts for 58.4% of the total crypto market. Meanwhile, stablecoins have a combined value of $232 billion, making up 7.06% of the overall market.
Data from 16,745 cryptocurrencies tracked across 1,238 exchanges gives a clearer picture of the market’s size. Tokens that are wrapped, bridged, or staked are excluded from these figures to prevent duplicate value calculations.
Conclusion
If the number of cryptocurrencies continues to grow at this pace, it could lead to both opportunities and risks for the market. A larger number of tokens could encourage new blockchain developments and financial applications, supporting industries ranging from supply chains to decentralised finance (DeFi) and non-fungible tokens (NFTs).
At the same time, too many cryptocurrencies could create challenges. With so many tokens available, investors may struggle to identify worthwhile projects, increasing the risk of scams and poor-quality tokens flooding the market. A crowded market also makes it harder for smaller tokens to gain liquidity or maintain stable prices.
Regulators may also tighten oversight, aiming to protect consumers from fraud and maintain market stability. While an expanding crypto market can indicate growth, it also demands greater caution from investors and better tools for assessing the credibility and value of different projects.