By The Numbers: More than 1 Million Unique Crypto Tokens Launched in the Last Month
The cryptocurrency community has been on a token creation spree, with over one million tokens launched across different blockchain networks in the past month. Solana and Ethereum have emerged as the frontrunners in this crypto token frenzy. According to the director of Coinbase, these numbers have already surpassed the total number of tokens created on Ethereum between 2015 and 2023.
Interestingly, while Ethereum and Arbitrum saw a relatively smaller number of new tokens launched (21,474 and 19,284, respectively), Solana has taken the lead with a whopping 643,227 tokens created since April 1. Out of these, 464,563 are memecoins, as reported by Dune Analytics. In fact, Solana has been witnessing an average of 20,000 new tokens being created daily.
Solana further reached a new milestone on Monday, with 23,000 new tokens created in just 24 hours. This surge can be attributed to the market pump triggered by the comeback of renowned crypto trader Roaring Kitty. Since his return to social media, several new memecoins have emerged, and some of them have experienced significant price surges.
These staggering numbers have sparked concerns among the crypto community. Many users have expressed worry that most of these tokens are simply spam created to manipulate sniper bots or to execute rug pulls on unsuspecting investors. The latest surge in token launches has made some investors cautious, with one user humorously advising to avoid investing in projects created after February 2024, given the prevalence of rug-pulls and scams.
The abundance of altcoins has become a topic of discussion in the market. DeFi researcher and Web3 investor Thor Hartvigsen noted in April that the supply of altcoins had been increasing rapidly. This surge injected an additional $8.6 billion of liquid supply into the market. Hartvigsen further emphasized that crypto projects would unlock $70.5 billion worth of tokens over the coming years, with many tokens launched in 2023 also becoming unlockable this year.
Hartvigsen believes that the floodgates have only just opened, and the crypto market will continue to be inundated with new supplies and tokens. He predicts that categories such as Modular Infrastructure protocols, Liquid Restaking Tokens (LRTs), Bridges and Cross-Chain Messaging solutions, and Perpetual Decentralized Exchanges (DEXes) will witness the highest number of new token launches in the coming months.
The cryptocurrency market continues to evolve rapidly, with new tokens being created at an unprecedented rate. Investors and users alike are advised to exercise caution and conduct thorough research before engaging with these tokens, given the increasing risks associated with rug pulls and scams.