September ICO Market Overview: Trends, Capitalization, Localization
In the last 12 months, the ICO market has shown a fluctuating trend, reaching two peaks, both for the number of ICOs and total capital raised: in December 2017 and March 2018. Afterwards, the amount of resources gathered by ICOs began to decline, in spite of the temporary recovery in June 2018. Nevertheless, the number of ICOs launched during the last year is above the value of September 2017, with a trend often diverging from capitalization. This movement implies a reduction of the average availability of resources per ICO. Data collected about ICOs which ended in September 2018 reflects the most recent situation for token issuing and crowdfunding. The general picture is quite gloomy: in spite of some clear ups and some robust trends, as the long-awaited recovery of the market still seems to be nowhere in sight.
In spite of the recent downturn of the market, businesses operating in the blockchain industry didn’t seem to lose the stimulus to promote new projects, trusting crowdfunding via ICOs as a means to retrieve capital. However, investors’ responses nowadays, are rather more tepid than how they used to be some months ago as could be seen on the graph above.
Considering data references back to September 2018, the variation in the number of ICOs concluded during the last month is slightly above that for August. The value of capital raised by all 155 ICOs ending in September fell by almost $325 million (with a fall of almost 46 percent, compared with the amount recorded in August). In addition to this, some data seems to indicate that promoting a token issuing event at the present time could bring results far from the success standard the market was used to at the end of 2017 - beginning of 2018. In fact, among all the ICOs ending in September, only 41 percent were able to raise at least $1, 24 percent achieved their soft cap, and only 2 percent got past their hard cap finish line.
Ethereum maintains its role as the leading platform for issuing tokens, with a share of almost 90 percent, thus the strong volatility could jeopardize the financial plans of many projects fueled by ICOs.
Considering the value of capital raised by ICOs during the last 12 months, after the peak of over $1.7 billion reached in March 2018, a downward trend has been clear since the end of spring 2018 and – in spite of a temporary recovery at the start of the summer – the tendency seems to have accelerated during the last few months, turning back the clock below September 2017’s values.
Countries and sectors: some stable trends
Although the ICO environment is growing to a slower pace, it seems, at least, quite stable referring to some features, such as its distribution in countries which offer some localization advantage, or its focusing on projects referring to the ‘core industries’ of the blockchain economy.