The cryptocurrency market has experienced a remarkable surge in the creation of new tokens, with over one million emerging in just 30 days. This exponential growth reflects the increasing interest in crypto assets and the positive attitude of investors towards the sector.
In terms of distribution, the Ethereum (ETH) network has witnessed the creation of 372,642 new tokens since April 1, with a majority of 88% on Coinbase’s layer-2 blockchain Base. On the other hand, Solana (SOL) has seen a proliferation of new cryptocurrencies, largely due to the popularity of memecoins. The Coinbase team’s Director, Conor Grogan, stated in a recent post that this number is double the amount of tokens that emerged on Ethereum between 2015 and 2023.
The Total Locked Value (TVL) on Base has surged by approximately 630% since the beginning of 2024, driven by the memecoin frenzy that emerged in March. Similarly, Solana has witnessed the creation of 643,227 new tokens, with 466,914 of them being memecoins, during the same period. This indicates that over 20,000 new Solana tokens are being created on a daily basis.
The popularity of memecoins on Solana is clearly evident when looking at the Dune Analytics dashboard, which tracks Solana-based memecoins on Step Finance and pump.fun. According to data from CoinGecko, more than 540,000 new crypto tokens have emerged in 2024 as of early April, averaging around 5,300 new tokens entering the market every day this year.
This year’s influx of new tokens already accounts for over half of the 830,000 new tokens that entered the market in the previous year, indicating that 2024 is on track to surpass 2023 in terms of the number of new tokens on-chain.
The response to this surge in the crypto community has been mixed. While some view memecoins as a catalyst for a new era, critics argue that their widespread adoption has led to an increase in fraudulent activities. Additionally, concerns have been raised about how investing in these speculative assets diverts funds away from more legitimate projects.
Despite these concerns, the emergence of approximately one million new tokens in just one month is a significant milestone. The popularity of memecoins is driving substantial market activity, but at the same time, it raises questions about sustainability and utility.
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Disclaimer: The information provided in this article is not investment advice. Investors should be aware that cryptocurrencies are highly volatile and carry risks, and should conduct their own research.