The 3 Biggest Crypto Bubbles of the Second Half: Too Many Tokens, Point-and-Click Games Frenzy, and Overheated NVIDIA Hype
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The 3 Biggest Crypto Bubbles of the Second Half: Too Many Tokens, Point-and-Click Games Frenzy, and Overheated NVIDIA Hype
The popularity of these Mini-app users on Telegram will cool down or reach saturation in the second half of 2024.
Navigating Web3 tides with focused insightsAuthor: Viet Anh
Translation: TechFlow
Key Takeaways
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The bubble-like surge in the number of altcoins in 2024 and its associated risks.
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Explosive growth in user numbers participating in tap-to-earn games in 2024.
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Rising momentum and signs of a bubble in Nvidia (NVDA) stock during 2024.
Between 2023 and 2024, the overall market capitalization of the crypto market has not exhibited parabolic growth, and has not even returned to its all-time high from 2021. These predictions about growth bubbles do not target the cryptocurrency market directly, but rather other data points and assets that significantly influence the crypto market.
Below is a summary and assessment of these growth phenomena.
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Growth in the number of altcoins in 2024 and the accompanying risks
Although market cap has not yet returned to peak levels, the number of altcoins and new projects has long surpassed previous highs—increasing manyfold compared to earlier cycles. This has led the market into an "oversupplied" state, where too many projects are competing for an increasingly shrinking share of total market value.
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According to Coingecko Research, as of April 2024, the number of tokens in the market exceeded 2.5 million, up from 1.98 million in 2023. This means over 500,000 new tokens were created in less than half a year. Coingecko reports that on average, 5,300 new tokens are created every day.
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At the same time, trading volumes have gradually declined, and total market cap remains below the 2021 peak. Recently, Binance took unprecedented measures by launching an early warning feature to alert users about tokens that may be delisted. This move comes amid an oversaturated listing environment and poor liquidity.
It is expected that in the near future, the number of tokens lacking liquidity and suffering from low trading volume will increase. Many tokens/altcoins will likely be delisted, prompting investors to reassess their portfolios and reallocate capital toward truly high-quality assets.
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Surge in user numbers participating in tap-to-earn games in 2024
Since early 2024, various tap-to-earn (tap screen to earn points) gaming apps on Telegram have sparked widespread excitement within the community.
Hamster Kombat announced that by June, their user base had reached 200 million, making it currently the most popular tap-to-earn application.
Tapswap reported 55 million global players and 18 million daily active users.
Yescoin also announced that within just over a month, they attracted 18 million users, with over 6 million connecting their wallets.
All these projects are highly anticipated to become the next "Notcoin." However, key questions remain: How can sufficient liquidity be provided for hundreds of millions of users? Will user growth continue indefinitely? Meanwhile, many experts believe the 2024 crypto market lacks inflows from retail investors—the very group that drove strong momentum in previous cycles.
With the total altcoin market cap recently falling below $100 billion, it is expected that the popularity of these Telegram mini-apps will cool down or reach saturation in the second half of 2024.
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Nvidia (NVDA) stock surges in 2024, showing signs of a bubble
Nvidia (NVDA) stock has emerged as a leading representative of the so-called "AI stocks" trend in 2024. Taking Apple as a recent example, its market cap increased by $600 billion as the company entered the AI space through collaboration with OpenAI. Over the past two years, NVDA's market cap has surged nearly 900%, surpassing both Google and Amazon to become the world’s fourth most valuable asset (after gold, Microsoft, and Apple).
The Financial Times suggests this phenomenon exhibits signs of a bubble—formed when investors overestimate a technology's potential and place excessive expectations upon it. It remains unclear what impact an eventual AI bubble burst might bring, but the positive correlation between U.S. equities and Bitcoin indicates it could severely affect the entire cryptocurrency market.
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