Over 1 million new crypto tokens launched since April

The crypto community has created over a million tokens across all chains in the last month, with Solana and Ethereum leading the crypto token frenzy. According to the director of Coinbase, these numbers doubled the tokens created Ethereum between 2015 and 2023.

Over 22,000 new crypto tokens created every day

Coinbase director Connor Grogan shared on X that 1 million tokens have been launched since April 1, 2024. Tokens created in the Ethereum network represent 36% of the total number, with 372,642 tokens launched in the last month and a half.

According to Dune Analytics, 327,553 tokens have been launched on the Base Layer-2 blockchain, approximately 88% of the total. The surge was apparently driven by the memecoin frenzy that has taken over this cycle.

Since April, token creation has increased exponentially. Source: Dune analysis

Additionally, Ethereum and Arbitrum saw significantly fewer 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 1st. Of these, 464,563 are memecoins, according to Dune analysis. Grogan also highlighted that Solana sees an average of 20,000 new tokens per day.

As reported by Solana Floor, the blockchain hit a new all-time high (ATH) of newly created tokens on Monday, with 23,000. This could be attributed to the market pump fueled by the return of popular cryptocurrency trader Roaring Kitty. Since his return to social media, several new memecoins have been created and the major ones have increased.

See more

The crypto community reacted to the surprising numbers, expressing many concerns. A user he underlined that most of these tokens are “just spam for farming sniper bots”. He said some people flip tokens “just to eliminate auto-purchased bots.”

Another user jokingly added, “The moral of the story is don’t buy projects created after February 2024.” This year, investors witnessed the launch of numerous projects that promised big returns. Instead, investors suffered manipulation and other scams.

Altcoin Overabundance?

In late April, DeFi researcher and Web3 investor Thor Hartvigsen he underlined that, just four months into the year, the market had seen a massive increase in altcoin supply.

As a result, this increase represented $8.6 billion in additional liquid supply entering the market. Hartvigsen added that crypto projects will unlock $70.5 billion over the years, with many tokens launched in 2023 “unlocking again this year with many cliffs finishing.”

Furthermore, the market observer highlighted that the average market capitalization float and fully diluted valuation (FDV) for the tokens thrown in the first quarter of 2024 it was just 13.6%.

List of some altcoins launched in Q1 2024. Source: Thor Hartvigsen

For him, this is just “the tip of the iceberg,” as the cryptocurrency market will continue to be flooded with new supplies and tokens. He offered a list of categories that he thinks will see the most new pitches this year.

Its list included modular infrastructure protocols, liquid restaging tokens (LRTs), bridge and cross-messaging solutions, and perpetual decentralized exchanges (DEXs).

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 an average of 63.6%.

According to the researcher, tokens such as JUP, ONDO and STRK have seen a decrease of 49.2%, 30.5% and 74.2% compared to ATH prices.

According to the weekly chart, the total capitalization of the cryptocurrency market stands at $2.28 trillion. Source: TOTAL assets TradingView

Featured image from Unsplash.com, chart from TradingView.com

Fuente