The cryptocurrency market is witnessing an increase in trade volume and transactions which cumulated into significant growth in the market in the last five months, according to a recent analysis by AltIndex.com published on Tuesday.

Several large digital coins saw double-digit price growth inspiring optimism among investors and causing the market to witness at least 1,000 new crypto coins pushing to 9,708 in July despite regulatory limitations. 

The prevalence of cryptocurrencies has been rising for years before the 2022 “crypto winter.” 

Data from Statista and Investing.com show that between 2013 and 2021, the total number of cryptocurrencies increased by 75 times, from just over 60 to more than 4,500.

Following the 2021 cryptocurrency boom, when the market added around 1,000 new cryptocurrencies each month, this number more than doubled. 

They reached a record high of approximately 10,400 in February 2022, but things started to decline after that. 

The biggest decrease in the number of coins and tokens readily available on the market occurred during the crypto winter. According to statistics, between February 2022 and February 2023, more than 1,700 digital coins were removed from crypto exchanges, bringing their total to 8,685.

Even though there are many more digital coins now than five months ago, the market value is still dominated by a small number of cryptocurrencies.

According to CoinMarketCap data, the top five cryptocurrencies currently account for 80.9 per cent of the overall cryptocurrency market cap and have a combined worth of $981 billion as of this week. 

The world’s largest and most costly cryptocurrency, Bitcoin, now makes up 48.6 per cent of the total market value of all cryptocurrencies, up from 41.6 per cent five months ago.