The crypto community created over one million tokens across all chains in the past month, with Solana and Ethereum leading the crypto token frenzy. According to Coinbase’s director, these numbers doubled the tokens created in Ethereum between 2015 and 2023.
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Over 22,000 New Crypto Tokens Created Daily
Coinbase’s director Connor Grogan shared on X that 1 million tokens have been launched since April 1, 2024. The tokens created in the Ethereum Network account for 36% of the total number, with 372,642 tokens launched in the past month and a half.
According to Dune Analytics, 327,553 tokens, around 88% of the total, were launched on the Layer-2 blockchain Base. The surge was seemingly propelled by the memecoin frenzy that has taken over this cycle.
Additionally, Ethereum and Arbitrum saw a significantly smaller number of new crypto tokens launched, with 21,474 and 19,284 new tokens, respectively.
However, Solana took the crown after seeing the creation of 643,227 tokens since April 1. Out of those, 464,563 are memecoins, per Dune Analytics. Moreover, Grogan highlighted that Solana registers an average of 20,000 new tokens daily.
As reported by Solana Floor, on Monday, the blockchain reached a new all-time high (ATH) in newly created tokens, with 23,000. This could be attributed to the market pump propelled by the return of renowned crypto trader Roaring Kitty. Since his comeback to social media, several new memecoins have been created, and the top ones have surged.
🚨 BREAKING: Over 23K New SPL Tokens created on @solana in the last 24 hours, a new all-time high. pic.twitter.com/cn4ARy0KwC
— SolanaFloor | Powered by Step Finance (@SolanaFloor) May 14, 2024
The crypto community reacted to the astonishing numbers, with many expressing concerns. One user pointed out that most of these tokens are “just spam to farm sniper bots.” He alleged that some people launch tokens “just to rug pull bots that auto-bought.”
Another user playfully added, “The moral of the story is don’t buy projects created after February 2024.” This year, investors have seen many project launches promising big returns. Instead, investors have suffered rug-pull and other scams.
Overabundance Of Altcoins?
At the end of April, DeFi researcher and Web3 investor Thor Hartvigsen pointed out that while only four months into the year, the market had seen a massive increase in the supply of altcoins.
As a result, this increase accounted for $8.6 billion in additional liquid supply injected into the market. Hartvigsen added that crypto projects will unlock $70.5 billion over the years, with many tokens launched in 2023 “also unlocking this year with many cliffs ending.”
Moreover, the market observer highlighted that the average float in market capitalization and fully diluted valuation (FDV) for the tokens launched in Q1 2024 was just 13.6%.
To him, this is only “the tip of the iceberg,” as the crypto market will continue to be flooded with new supplies and tokens. He offered a list of categories he believes will see the greatest number of new tokes this year.
His list included Modular Infrastructure protocols, Liquid Restaking Tokens (LRTs), Bridges and Cross-Chain Messaging solutions, and Perpetual Decentralized Exchanges (DEXes).
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On Tuesday, DeFi researcher Ignas shared a list based on the recently launched low-float tokens shared by Hartvigsen. According to him, these tokens are down by 63.6% on average.
According to the researcher, tokens like JUP, ONDO, and STRK have registered a 49.2%, 30.5%, and 74.2% decrease from ATH prices.
Featured Image from Unsplash.com, Chart from TradingView.com