Topic: 40% of coins have no broad usage? - page 2. (Read 437 times)

I think part of the reason might be that these coins serve more specialized functions within their ecosystems, which may not be directly visible to the average user. For example, BNB is heavily used within the Binance ecosystem for things like transaction fees, which might not translate to broader everyday use. XRP is designed primarily for cross-border payments between financial institutions, so its utility may be more behind the scenes rather than in consumer-facing applications.

That being said, it's also possible that a significant portion of the value of these coins is speculative. The crypto market is still largely driven by investor sentiment and future potential rather than current utility. In some cases, the market cap could indeed be propped up by expectations of future growth or technological advancements rather than current usage.

It's a complex issue, and I wonder if we’ll see a shift in how these coins are utilized as the market matures. Could broader adoption and practical use cases emerge in the coming years, or will these coins remain primarily speculative assets? I’d love to hear more thoughts on this from others who have been following these projects closely.

The top 20 coin by marketcap value including BNB, XRP, Solana and TON are typically focus of serious and long-term investors as they are not considered speculative coins. Their wide-spread use case in transactions is limited. The value is primarily driven by market dynamics, investors sentiment and potentia future use case rather than current adoption.

I always prefer to invest in top-20 coins because they are secure, well established and recognized projects, even though they may not be ideal for short term gains.

Saying 40% seems like it's even optimistic, I feel like 90% of them do not have any broad usage at all, we are talking about tens of thousands of coins in the world and we do not have broad usage for almost all of them. Even at the top 10, we still have doge and xrp, which has absolutely no usage at all and totally useless coins and yet people like them so they are there.

Today's crypto market is not that healthy, too many people figured out that they could create a token, promote it, airdrop some, make people work to make it famous, and launch, making as much as they can, some make nothing, some make a lot, and they take the money and leave. That is why the crypto market is filled with a lot of projects that worth absolutely nothing.

this is true because 90% of coin these days are just VC play into cashing out their investment and make easy money with 3-100x gain.

a brief look at most of the newer coin tokenomic always look about like this



big chunk of allocation goes to the investors and i'm pretty dang sure the investors are buying the coin at really cheap price and will immediately dump their token upon token unlocking.

Here is from Coincards.com you linked to:
#XMR: 34.4%
#BTC (Onchain): 25.96%
#USDC: 20.20%
#ETH: 9.84%
#LTC: 2.49%
#Solana: 2.31%
#Dogecoin: 2.09%
#LightningNetwork: 2.08%
#USDT: 0.58%

I think these lists prove the point I was making, which many 10 coins are NOT substantially exchanged in general market environments outside of exchanges. Thanks for your link.

I do see Solana on that list so I suppose it does have some adoption I didn't know about. People don't pay for things using XMR, Toncoin, or BNB, though apparently do for Solana. And yes there is certain niche utility many coins like BNB coin being used for a website on the BNB website. However, that would seem to make the value of the coin as the underlying discount. I don't think BNB has $75 billion dollars of pending discounts to their services.

If the value of a coin isn't broad market spending such as the Coincards.com list above, then it has very little transactional value. A lot of people make a mistake to say that non-backed currency has NO value, which is false. It still has transactional value according to the total transaction volume. But of course there is also speculation value, and as discussed utility value like the BNB website discount coin. Some coins have other value like Filecoin.

Personally I think most coins have mostly speculative value. I think the only coin that is priced for mostly transactional value is XMR. It has a market cap of something in the neighborhood of $3 billion, and probably does have billions in annual transaction volume. Of course I'm not counting mere exchange volume as exchanging from one coin to another doesn't reflect creation of economic value in the way that buying food or VPN service is.

you got flawed idea of usage or utility in this case, a coin not being accepted or spent for something like donation to content creator doesn't mean it's underutilized.
the coin itself already serve a different purpose than the one you mentioned, like BNB is utilized to get discount on the binance platform and some other utilization like launchpools, etc.

a coin doesn't need to be accepted for specific thing that align to your idea of utility for it to have utilization.

I think the ratio should be more than 40% and should be increased to around 70% to 80% because that what it is, at some level the cryptocurrency market began to strink down and many were even beginning to ask if bitcoin itself have a usercase, but the unique thing about cryptocurrency coins is that, it holder's are the first ecosystem, because as long as any investors hold the crypto coin, he or she will be contributing directly or indirectly to the growth and development of the coins so the project teams believe this as an automatic ecosystem for the project which is somewhat correct.
Between when taking about a clear business ecosystem, then you can say only a few coins have such clear ecosystem that their provides services for such as being used as utility on those plartforms, e.g BNB which is use for gas fee's on the world biggest cryptocurrency exchange.

And thats why it would really be that important that you should really be looking into those projects that are really that worth on investing into specially in long term. I wouldnt say that it would be 40% of coins are shit but rather it would be 90% of them are total shit and copy cats and 10% are the ones who do have that kind of relevant utility on which it could really be something helpful and something that will really be considerable and the rest are really just that trying out to copy those ideas and been flooding out or being saturated in the market on which its not really that a shocking thing anymore and been long time have seen into this market. The amazing thing here on this kind of situation that despite on how shitty those coins are they re really that being pumped more with multiple folds specially if there's a whale that would really be moving up those coins without having that reasonable targets on it. This is why you cant really be able to blame out people on why there are really those investors who would really be putting up some risks on investing into these coins despite of the risks level just because of this very reason.

If you are someone who cant really be able to bare up with the risks then it would really be your own choice and its common sense that you would really be sticking into those projects on which you do know
that it would really be good on holding out for long term but of course it wont really be that 100% assurance that it would really be staying up on the market like forever on which we know we cant really just
that ignore that flipping on those old coins with new coins could really be happening and this is where you should really be looking upon.

So, are you saying that only "broad usage" of these coins is for donations? Or the fact that less people accept them then eth or btc for example, so that makes them to have less use cases, or what?

Because i would argue that sending is just one use case and many of these chains have same use cases, just different solutions for them. And we can also argue if those other then "send" use cases like smart contracts are anything special, or if we just haven't unlocked their possibilites, but regardless what ever you think of the use cases; that number in the topic "40%" doesn't mean anything. You literally made that up that without any research.

BitPay, one of the leading crypto payment processors, publishes regularly the numbers of transactions per coin on this platform. The most recent numbers from July 2024 are:

- Litecoin - 34.31%
- Bitcoin - 24.97%
- Ethereum - 11.25%
- Bitcoin Cash - 8.83%
- USDC - 5.22%
- Dogecoin - 4.97%
- Polygon (MATIC) - 4.46%

Source: Bitpay (archived version)

It is widely known that LTC is very popular (in relation to its market cap) as a payment tool. And you're correct at least if we look at Bitpay: the coins you mention don't even show up in this top list.

There are other numbers from other merchants which show that Monero is also quite strong in the "payment" category. Like shown here (Shopinbit) or here (Coincards). The latter has also a relatively high Solana participation. But BNB and XRP don't appear on any of these stats.

In general however I agree with those writing that just the cryptocurrencies mentioned in the OP are known more as "utility coins" (gas) for smart contracts and a tool to create tokens on them. ETH is the only one strong in both "market segments". Toncoin seems to be used mainly in the Telegram ecosystem.

Their primary use I think isn't really for accepting payment, donation or anything like that the coin itself serve as a gas token for the blockchain and usually people who need to do transaction uses stablecoin inside the blockchain.

these smart contract blockchain coin I think being created with defi or any web3 project that uses their smart contract capability in mind, the fact that they can be used for payment as well is probably just a bonus.
but overall they are more focused on giving people the platform to use their smart contract capability and thats it.

40%?

I would say you are being too lenient. I think about 99% of them have no broad usage, tokens inclusive. Most of them are just created to make the devs and a few individuals rich, with newbies ending up buying hot air and holding bags of a token that keeps declining in price with no future new all-time high.

Having it as part of their accepted donation cryptocurrency isn't really a matter at all. It's their preference but we have no idea on how much they're holding with such coins.

Every cryptocurrency is speculative. Bitcoin is speculative and so as Ethereum and the others in the crypto market. And that's why if it's about the choice of what to spend, we all have our own choices based on what we think should be accepted. But with the market that these coins have, most of them are just treated to be a store of value or plainly as an asset to hold.

I guess you have just shared your point of view about the realty differs especially for the coins you have mentioned because we get to do freelancing and accept payment through these coins and vice versa. I see people buying products using these coins and your point stands true for pump and dump shitcoins but not applicable for the coins you have mentioned.

Unfortunately either people are so blind that they consider scam projects as real service provider or they mistake genuine projects as scam.

Coins or tokens in the top 50 are considered usable, not just for speculative or market-propping purposes. They are being used by their community on their transactions peer-to-peer to market-to-market. So many coins and tokens have no usage, but those coins and tokens you've mentioned are important in the industry.

We are still in the adoption stage. Soon, these coins and tokens will have their marketplace, or the top marketplace on the internet will integrate them into their system.

Although some coins and tokens have been adopted by small and medium-sized marketplace

I believe where you are getting it wrong is that you are viewing the whole crypto market based on the idea that all the coins that are on the market are the most adopted and popular ones however it isn't so. The number of tokens and coins on the crypto market as just too many to count. However unfortunately a majority of the are a bunch of shit coins and pump dump schemes. Frankly speaking I'm of the opinion that coins that were created based on the intention to be used for transactions and investments are the already old popular coins.

Many coins that are being released today are just schemes that investors use to make more profit by simply pumping them to gain adoption and dumping them later on.

I've used solana to purchased a smartphone online and I've used BNB to pay for hardware wallets and even bought some BTC and alt mining equipments, what are you talking about? This is a freedom space where anyone should use any digital assets that they feel its best for them, we don't have to keep using the same thing this is the idea, all the coins you made mentioned are good ones, even some under top 20 on coinmarketcap.

Donations are the smallest usecase of digital currencies in crypto space, even meme coins that I considered to be pure hype and speculations are good for donations too, yet we have meme coins millionaires around the world, I think you should start doing your own research on coins before coming to conclusions.

You are not looking further; you have just based it on your limited perception and observation. These coins have their usage, not just for donations. They have their own community, and their users are using them for transactions for many purposes. Just last week, I paid for my internet connection using BNB.

These coins/tokens can be used for many things, not just for donations and speculation. In fact, there are stores online and offline that are using these coins to pay for their services and products; you have to do your research.

The coins that you mention are all coins that have a wider use case aside from being used by any freelancer's website as a means of accepting payments and donations.
 
They are coins that run on their own blockchain, and they are also coins that are used to cover up transaction fees for tokens that operate under their network.
 
So now you can see that those coins undergo daily usage, which means there is a need for them every single day. The more new projects launch on any of the blockchains, the more possibilities there are for those coins to be used. 

BNB, XRP, Solana, and Toncoin are in the top 10 based on market cap. However, it seems that tiny numbers actually accept or spend these coins, such as posting them in their donation links if they are a content creator. It seems like these coins represent a large fraction of the market but don't have even a fraction of their purported value of extremely small use cases. Is the value of these niche coins speculative or is it just market-propping?