The crash in the cryptocurrency market which occurred last month may see more coins and blockchain platforms collapse in the coming years, experts are saying.
Crypto assets have plummeted in 2022, losing more than $1 trillion in market value as investors flee the risk assets. While this trend slightly continues, crypto players are beginning to lose confidence, and others leaving the market and refocusing on a different venture tech economy reports.
Experts say many of the over 19,000 digital coins and blockchain platforms in existence today will disappear and fall out soon.
In an interview, Bertrand Perez, CEO of the Web3 Foundation, told CNBC that one of the effects of what the world has seen last week with the Terra issue is – “we’re at the stage where basically there are far too many blockchains out there, too many tokens. And that’s confusing users. And that’s also bringing some risks for the users.
“Like at the beginning of the internet, you were having lots of dotcom companies and lots of them were scams and were not bringing any value, and all that got cleared. And now we have very useful and legit companies.”
Experts are concerned that the number of digital coins is just too much when compared to the number of fiat currencies which is around 180. Coins such as Bitcoin, and Ethereum will continue to exist while many of the junk coins die a natural death.
Digital coins like Shiba Inu which appears to be recovering from the market crash are not out of the woods yet. There are still many threats surrounding this coin that could turn it into the next Luna.
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“Things are not looking good for the meme coin Shiba Inu, with our panel expecting it to be worth US$0.000018750 by the end of 2022.
This would mark a 7.6% drop in its value from its current price of US$0.00002029,” Analytics Insight said in its latest price prediction report, originally published on May 10.
The report further said that its group of 36 experts expected Shiba Inu’s value to “plummet” and close at US$0.000002500 in 2025 and US$0.000000325 by 2030-end.
To be sure, Finder’s values don’t predict if the token can see a surge in-between, which means that short-term traders may still make profits as it falls to zero.
According to crypto experts, Shiba Inu is almost in the same category as Luna.
They are projects that have not been built on a solid product. They have no real use cases. The biggest challenge for the Shiba Inu project is the lack of usability. This is because Shiba Inu started as a meme currency and built its huge market cap based on hype and not on a real product.
Most youths across Nigeria have invested heavily in blockchain and most digital coins platform therefore if this happens the result will be worrying.