As a researcher with experience in the crypto space, I find these numbers quite astonishing. The creation of over one million tokens across all chains within a month is an unprecedented figure that doubles the number of tokens created on Ethereum between 2015 and 2023. The surge in new token launches seems to be driven primarily by Solana and the memecoin frenzy.
In the past month, the crypto community has generated over one million new tokens spanning all blockchains, with Solana and Ethereum being particularly active in this token craze. This production figure represents a significant increase, as it surpasses the number of tokens created on Ethereum between 2015 and 2023, according to Coinbase’s director’s assessment.
Over 22,000 New Crypto Tokens Created Daily
Expert: Coinbase’s director Connor Grogan revealed on X that approximately 1 million new tokens have been introduced into circulation since April 1, 2024. Among these, about 36% were created within the Ethereum Network. Specifically, around 372,642 tokens have been launched during the past month and a half.
Based on Dune Analytics’ findings, approximately 88% of the total 327,553 tokens, or around 281,042.72 tokens, were introduced on the Layer-2 blockchain, Base. This significant increase appears to have been fueled by the current memecoin craze that has gained momentum during this market cycle.
As a crypto investor, I’ve observed that the number of new tokens launched on Ethereum and Arbitrum networks was notably lower compared to previous periods. Specifically, only 21,474 new tokens saw the light of day on Ethereum, while Arbitrum witnessed the birth of 19,284 new digital assets.
As a researcher, I’ve discovered that since April 1, Solana has seen the generation of approximately 643,227 tokens. Among these, around 464,563 can be categorized as memecoins based on Dune Analytics data. Notably, new tokens on Solana are being created at an average rate of about 20,000 per day.
According to Solana Floor’s report, the blockchain set a new record on Monday with over 23,000 newly minted tokens, a significant increase likely fueled by the market surge instigated by the highly influential crypto trader Roaring Kitty upon his recent social media return. Following his comeback, various memecoins have emerged, and those at the top have experienced substantial growth as a result.
BREAKING: Over 23K New SPL Tokens created on @solana in the last 24 hours, a new all-time high.
— SolanaFloor | Powered by Step Finance (@SolanaFloor) May 14, 2024
Members of the cryptocurrency world were taken aback by the impressive figures, leading several to voice apprehensions. One individual asserted that a significant portion of these tokens amount to nothing more than “junk to lure sniper bots.” According to this person, some individuals create tokens exclusively to deceive and manipulate automated trading bots that have automatically purchased them.
Playfully put forward by another user, the essence of the tale is: Be cautious about investing in projects launched post February 2024. With an abundance of new investment opportunities emerging this year, unfortunately, many have resulted in rug-pulls and scams for unsuspecting investors.
Overabundance Of Altcoins?
In late April, Thor Hartvigsen, a DeFi researcher and Web3 investor, noted an impressive surge in the availability of alternative coins during the first four months of the year.
I analyzed the data and found that the market experienced an influx of $8.6 billion due to this increase. Hartvigsen further mentioned that crypto projects are expected to unleash a total of $70.5 billion in the coming years, with several tokens slated for launch in 2023 also releasing this year as many cliffs come to an end.
In addition, it was noted by market analysts that the typical market size and fully diluted valuation for the cryptocurrencies introduced during Q1 2024 averaged only 13.6%.
This is just the beginning for him in the crypto market, as a large influx of new supplies and tokens is expected to enter the scene. He provided a list of sectors that he thinks will witness the most new token launches this year.
The list he compiled encompassed Modular Infrastructure protocols, Liquid Restaking Tokens (LRTs), Bridge and Cross-Chain Messaging technologies, as well as Decentralized Exchanges in the form of Perpetuals.
On Tuesdays, Ignas, a Defi researcher, unveiled a collection of newly introduced low-float tokens, which Hartvigsen had previously highlighted. Ignas indicated that the average loss for these tokens was approximately 63.6%.
Based on the findings of the researcher, the prices of tokens JUP, ONDO, and STRK have dropped by 49.2%, 30.5%, and 74.2% respectively, compared to their all-time highs.
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2024-05-16 06:04