Amid the ongoing cryptocurrency market meltdown, new projects are still entering the sector, potentially guided by the possibility of a future rally. At the same time, investors appear to trust emerging assets pumping capital into the projects.
In this line, real estate-centred Nblh (BNLH) trading at $0.02 has the highest market capitalization at $18.5 billion among new cryptocurrencies tracked by CoinMarketCap as of August 29.
Metaverse gaming-based Ivar Coin (IVAR) valued at $1.43 ranks second with a market cap of $14.2 billion, While Bitcoin Pay (BTCPAY) is third at $805 million trading at $3838. Cumulatively, the three new projects listed on CoinMarketCap within the last three days control $33.5 billion in market cap.
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The significant capital inflow into the projects can be partly tied to their promised utility. Indeed, amid the influx of new crypto projects, there is a consensus that those with viable use cases will likely stand out in the market.
For instance, Nblh seeks to promote transparency, stability, and offer investment opportunities in the growing real estate sector. Elsewhere, BTCPAY aims to accomplish some of the shortcomings in the existing crypto projects by acting as a store of value, capital, and consumable asset.
Bet on the crypto rally
Furthermore, investors are likely betting on the assets’ surge in value, with a section of the broader market projecting that the current correction is temporary. Based on historical trends, investors who get involved in a crypto project early tend to profit in the long term.
It is worth pointing out that the growth of crypto projects has also ushered in scams that tend to over-promise on returns. Consequently, investors who fall for such projects unknowingly pump in more money.
Interestingly, eight of the top ten new cryptocurrencies with the highest market cap have been built on the Binance Chain (BNB). The blockchain has been marketed to help promote cryptocurrency adoption in the financial space.
The network is considered friendly to developers by being fast and with fewer transaction costs since the platform has a decentralised exchange (DEX) that facilitates crypto swapping. Additionally, BNB has a mobile platform that enhances efficiency while allowing development teams to create new projects on the go.
Ethereum recording fewer projects ahead of Merge
Notably, although Ethereum (ETH) has historically ranked among the leading blockchains for developing new crypto projects, the upcoming Merge upgrade can be viewed as a hindrance.
The upgrade will transition the blockchain to a Proof-of-Stake (PoS) protocol. Therefore, due to the magnitude of the upgrade, developers might be uncertain regarding the post-Merge environment.
The precautions regarding the Merge is highlighted by a previous Finbold report indicating that crypto exchange Coinbase will briefly pause all withdrawals and deposits involving Ethereum until the entire migration is complete.
