ICO Market 2018 vs 2017: Trends, Capitalization, Localization, Industries, Success Rate
2018 recorded both the highest point of growth of the ICO market and the most severe downturn since 2017.
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Disclaimer: This article does not contain investment advice or recommendations. Every investment and trading move involves risk, you should conduct your own research when making a decision.
The ICO market data is provided by ICObench, based upon the projects’ announcements recorded in ICObench database, which includes over 5,100 ICOs since August 2015.
In 2018, 2,284 initial coin offerings (ICOs) reached their conclusion and investors could choose, on average, among 482 token sales opening every day of the year. During 2017, the corresponding values were just 966 and 91 ICOs respectively.
However, the economic results are less impressive: The total amount raised in 2018 was almost $11.4 billion, against little more than $10 billion during 2017, with a mere 13 percent growth.
A balance of the general trend of the ICO market during 2018 is, in fact, double-edged. With ICOs in March 2018 collecting almost $1.75 billion, the first half of the year marked the highest point of growth since the beginning of the upward trend that started in late spring 2017, although June 2017's data is an anomaly, as seen below. On the other hand, the closing months of the year recorded a radical downturn, such as in November 2018, which brought in just $0.36 billion, making it the worst result since May 2017.
Both trends mirror the volatility of the whole crypto market during 2018, especially of Ether, given that Ethereum is the platform the majority of the ICOs issued on their token, with 84.29 percent of the projects, against 1.25 percent raised on Stellar and 0.55 percent on NEO.
Ether achieved its historical highest price on Jan. 13, 2018 (almost $ 1,352), while the lowest level of the year was touched on between Dec. 14 and 15 (around $84, with a loss of about 94 percent of its value). The ICO market seems to react to the trends of the underlying cryptocurrency in slightly volatile ways. In view of the funds raised, the spread between the picks of March and November 2018 is about 79 percent.
Considering the data from a medium- and long-term perspective, the funds gathered by ICOs at the end of the year are still far above the level at the beginning of 2017. Even considering only the first 15 days of December — the data available as of press time — in January 2017, the capital raised by ICOs amounted to about 1.8 percent of the funds available during the last month of 2018, while Ether capitalization accounted then for about 9 percent of the December 2018 level.