The cryptocurrency market has experienced a surge in the creation of new tokens, with over one million emerging in just 30 days. This rapid increase demonstrates the growing interest in crypto assets and the optimistic approach 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 88% of them being on Coinbase’s layer-2 blockchain Base. On the other hand, Solana (SOL) has seen a significant number of new cryptocurrencies due to the popularity of memecoins.
Conor Grogan, the Director of the Coinbase team, revealed in a recent post that the number of tokens created is double the amount that emerged on Ethereum between 2015 and 2023. This highlights the extraordinary growth in the creation of tokens.
The Total Locked Value (TVL) on Base has increased by approximately 630% since the beginning of 2024, driven by the memecoin craze that emerged in March. Similarly, Solana has seen the creation of 643,227 new tokens, with 466,914 of them being memecoins, during the same period. This suggests that more than 20,000 new Solana tokens are being created daily.
The popularity of memecoins on Solana is evident when looking at the Dune Analytics dashboard, which tracks Solana-based memecoins on Step Finance and pump.fun. According to data from CoinGecko, over 540,000 new crypto tokens have emerged in 2024 as of early April, with an average of 5,300 new tokens entering the market daily this year.
The number of new tokens created this year already surpasses half of the 830,000 new tokens that entered the market last year, indicating that 2024 is on track to exceed 2023 in terms of the number of new tokens on-chain.
The reaction to this surge in new tokens has been mixed within the crypto community. While some believe that memecoins have initiated a new era, critics argue that their widespread adoption has led to an increase in fraudulent activities. There are also concerns that investing in these speculative assets hinders investments in more legitimate projects.
Despite these concerns, the creation of approximately one million new tokens in just one month is a significant milestone. The popularity of memecoins brings about significant market activity but also raises questions about their sustainability and utility.
It is important to note that the information provided in this article does not constitute investment advice. Investors should be aware of the high volatility and risks associated with cryptocurrencies and should conduct their own research.
