A growing concern in the crypto market is the potential for mass token extinction due to oversaturation with tokens.
Crypto research firm Castle Labs has published a detailed analysis highlighting the issue of a saturated market, where only a handful of top assets dominate the space. The study shows that the current environment is not a broad recovery, but rather a selection phase, where stronger projects are emerging from weaker ones.
The data indicates that the top five crypto assets now account for 84.4% of total market capitalization, while smaller tokens struggle to gain traction. Castle Labs notes that even if only 99% of existing tokens were to lose value, the industry would benefit.