Bitcoin's recent resurgence is sparking optimism in the cryptocurrency community, potentially reversing a downward trend that has seen a significant number of projects fail. A report by Alphaquest and Storible revealed that since 2020, 72% of crypto projects have ceased operations, with over 8,800 out of 12,000 projects found to be defunct.
The year 2023 was particularly challenging, accounting for nearly 60% of the failed projects, with the collapse of FTX, a major crypto exchange, triggering increased regulatory scrutiny. Following FTX's demise, 32% of projects met a similar fate, according to Alphaquest.
However, the launch of spot bitcoin ETFs in the US has injected fresh enthusiasm into the market. Since their introduction in January, bitcoin has surged over 47%, reaching new all-time highs. Optimistic projections suggest that bitcoin could hit $100,000 by the end of the year, driven by factors such as increased ETF inflows, an upcoming halving event, and relaxed interest rates.
Industry experts believe that bitcoin's rally will benefit the entire crypto sector by attracting new investors and attention. The rise in bitcoin's value also enhances the purchasing power of crypto investors, as bitcoin is commonly used as collateral for margin trading on exchanges.
As bitcoin and other major cryptocurrencies approach record highs, interest in alternative coins is growing. Investors are increasingly exploring new opportunities and taking on more risk, seeking out promising projects in the early stages of development.
The overall cryptocurrency market recently hit a milestone, with a total capitalization of $2.58 trillion. Altcoins like ethereum, BNB, and dogecoin experienced notable gains, indicating a broader market uptrend.
Despite the surge in altcoin activity, bitcoin is expected to maintain its position as the dominant market driver in the coming years. Analysts predict that bitcoin's market share could increase from around 50% to 55%-60% in 2024, underscoring its enduring influence in the crypto space.
