Is crypto dead: Cryptocurrency prices have been on a downhill spiral for a while. Since 2021, Bitcoin has peaked at almost $69,000, and many other cryptocurrencies have also made their mark. But since then, several factors have hurt the price of cryptocurrencies, including geopolitical tensions, government regulations, and economic hardship.
Although there is a clear downward trend in the crypto market, several cryptocurrencies still have seen considerable gains in value over the past year. However, the future of these cryptocurrencies remains uncertain. The list below ranks cryptocurrencies based on their total market capitalization, which is the total value of all coins in circulation.
What Do You Mean By Crypto Dead?
Cryptocurrenncy Dead is a term used to describe the current state of the cryptocurrency market. It denotes an extended period of stagnation, where prices remain low, and trading activity is minimal. This can be attributed to several factors, such as reduced investor confidence in the sector due to recent scams and hacks, regulatory uncertainty, and a lack of mainstream adoption.
During the Crypto Dead periods, market participants are typically more cautious and conservative in their trading strategies. This can make it difficult for new investors to enter the market or projects to launch ICOs successfully. However, the crypto industry is known for its resilience, and there may be a potential turnaround if positive developments occur. It remains to be seen whether the current Cryptocurrency Dead period will remain in place or if a resurgence of investment and trading activity is imminent.
The Factors & List of Dead Crypto
1. Coinbase – A New Commercial Is Tone-Deaf
The new commercial of coinbase is utterly tone-deaf. The company’s new commercial mocks pessimists of the crypto winter. The company’s spokesperson explained that the commercial was a part of a larger media buy. It was commissioned months in advance.
Coinbase had also previously credited its advertising agency Accenture Interactive with the campaign. While the company has since apologized for the ad, it still appears tone-deaf and inappropriate.
The ad, which ran during the Super Bowl, managed to get 20 million views in one minute. The ad’s marketing strategy worked. Coinbase could have cheaply signed up an enormous number of new users in the first few weeks of 2019.
In addition, the ad also boosted the company’s total and monthly active users (MAU), which measures how effective its marketing strategy is. But the market has pegged the revenue of COIN too closely to the prices of crypto assets. As long as the company can continue to increase its user base, revenue should decouple from the price of crypto assets.
The new commercial from Coinbase is a rebuke to all of its critics, including Armstrong himself. The commercial featured a QR code scrolling across the screen, which changed colors when it hit the television frame. Coinbase has spent $14 million on the commercial, which went viral after the first day. The ad was so effective that the company’s website crashed due to the sudden surge in traffic.
2. Ethereum – Switch To Proof-Of-Stake
Ethereum has been mulling over a switch from proof-of-work to proof-of-stake for the past few years. However, the move has been delayed several times. The change is part of the upcoming “ether 2.0” upgrade series, which restructures the foundations of the blockchain.
Proof-of-stake has its own set of drawbacks, however. It’s not as decentralized as a proof-of-work system and is prone to the so-called 51% attack, where a malicious actor takes over 51% of the network’s nodes and validates ill-intentioned transactions.
Alternatively, a malicious actor could target hundreds of Ethereum wallets at once and hijack the entire network.
This mechanism is tediously slow, averaging only fifteen transactions per second. It also doesn’t scale well. In 2017, for example, a game called CryptoKitties caused a transaction pile-up on the network, causing many ETHs to disappear. However, decentralized blockchains will be the norm in the future, with applications running on them.
3. Bitcoin – Decentralisation
There are two ways to look at Bitcoin’s decentralization. One is to look at the decentralized nature of its network, and the other is to look at the benefits of a decentralized system. While some critics of decentralization claim that it is inherently doomed, many others claim it has many advantages.
One of the benefits of decentralization is that it’s easy to scale. Bitcoin’s scalability problem was solved by introducing a second layer to the network. This layer enables users to conduct transactions outside the blockchain, increasing transaction speeds and reducing transaction costs.
Decentralization also reduces the threat of hackers. A single dominant party system has security vulnerabilities and can be hacked by a third party. The decentralized system reduces this threat, ensuring users’ data is secure.