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Is this a healthy thing for the growth of cryptocurrency network or is it degrading the value of the system as large number of cryptocurrencies are available with zero trading volume and without any product backing.
Although every day new coins and tokens appear, but not all of them can survive in the cryptocurrency ecosystem. Of the thousands of coins and tokens, only those with strong, innovative, unique products and have high investor confidence can form an ideal market capacity. I see many cryptocurrencies indicates that this is a promising new land, meaning that more people or groups or companies are competing in creating a cryptocurrency with unique niches that attract users and investors in particular. That is why natural selection applies here, coins and tokens with weak market capacity will become less valuable because they lose investor and trader confidence.