Experts predicted the disappearance of “thousands of tokens” and the reduction in the number of blockchain platforms

To date, the crypto industry is represented by more than 19 thousand cryptocurrencies and dozens of blockchain platforms. Blockchain infrastructure, such as Ethereum, is the underlying technology within which many of the cryptocurrencies are created and operate.

The recent collapse of the so-called algorithmic stablecoin terraUSD and its associated digital token luna, which slashed industry capitalization by roughly $800 million, has led many investors and analysts to question the need for smaller tokens.

“One of the consequences of the Terra problem is that we are at a stage where there are already too many blockchains and too many tokens. And it confuses users. And this also causes the emergence of various new risks,” said Bertrand Perez, CEO of the Web3 Foundation, during a speech at the Davos Forum.

In turn, Ripple CEO Brad Garlinghouse admitted that only a few dozen cryptocurrencies will remain on the market in the future:

“There is a question, do we need 19 thousand digital currencies today. There are only about 180 currencies in the fiat world.”

Last week, Guggenheim chief investment officer Scott Minerd added to the pessimism by saying that most cryptocurrencies are “junk” but bitcoin and ethereum will survive.

We previously reported that in the cryptocurrency race, Ethereum will soon replace Bitcoin. This opinion was voiced by the head of the Soros Foundation Don Fitzpatrick.

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