One Million New Crypto Tokens Spawn, Solana and Ethereum Lead the Charge

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In an unprecedented move, an upwards of one million tokens have been spawned across multiple chains within the last month, establishing Solana and Ethereum as frontrunners in the ongoing crypto token fervor. Connor Grogan, the director at Coinbase, has reported that these figures have indeed pioneered a new milestone by doubling the total tokens minted by Ethereum from 2015 to 2023.

Connor shared that an astounding one million tokens have made their debut since the dawn of April, 2024. A significant 36% of these, amounting to 372,642 tokens, were birthed within the Ethereum Network in the span of the past six weeks.

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Complementing this update, Dune Analytics elaborated that 327,553 tokens— a solid 88% of the preceding figure, were set sailing on the Layer-2 blockchain Base. This extraordinary upswing, they argue, seems to be anchored in the memecoin frenzy that’s currently in vogue.

It has also been observed that both Ethereum and Arbitrum have experienced a markedly leaner number of new cryptocurrency tokens, accounting for 21,474 and 19,284 fresh tokens, respectively.

Yet, the bells of triumph resonate most loudly for Solana, which oversaw the launching of 643,227 tokens since April 1. Meticulous record-keeping by Dune Analytics reveals that an impressive 464,563 of these are memecoins. Furthermore, Grogan brings attention to the fact that Solana clocks an average of 20,000 new tokens daily.

According to reports by Solana Floor, the blockchain catapulted to a new zenith in newly-created tokens, notching up a score of 23,000 last Monday. Analysts speculate that this surge was fueled by the market pump curated by the re-emergence of legendary crypto trader Roaring Kitty. His return to social media, marked by several new memecoins and the subsequent ascension of the top ones, has been accompanied by significant market activity.

The gargantuan figures, however, haven’t been met with universal applause. Several voices within the crypto community have echoed concerns, with one critic pointing out that a majority of these tokens merely serve as cannon fodder to farm sniper bots. More grave concerns also emerged, with accusations that certain opportunists launch tokens explicitly for a quick and underhanded ‘pump and dump’ operation. Adding a touch of humor to the high-stakes proceedings, another community member quipped that the key takeaway from the scenario is to avoid backing projects post-February 2024 — which have offered much promise, but all too often culminate in so-called ‘rug-pulls’ and scams.

Thor Hartvigsen, a DeFi researcher and Web3 investor, cued into the distinctive rise in altcoin supply observed in 2024 already, alongside an addition of $8.6 billion extra liquid supply funneled into the market, and suggested a massive unlock of $70.5 billion across the next few years. Hartvigsen also underscored that a notable portion of tokens launched in 2023 are due for unlocking later this year.

With just 13.6% average float in market capitalization and completely diluted valuation (FDV) for tokens, Hartvigsen assures that we’re only seeing “the tip of the iceberg”. He speculates a constant influx of new tokens and supplies in the market with the Modular Infrastructure protocols, Liquid Restaking Tokens (LRTs), Bridges, Cross-Chain Messaging solutions, and Perpetual Decentralized Exchanges (DEXes) poised to be the busiest.

Backing up Hartvigsen’s data, fellow researcher Ignas details a depressing 63.6% mean dip for newly-launched, low-float tokens. He asserted that tokens like JUP, ONDO, and STRK in fact, have registered a 49.2%, 30.5%, and 74.2% dip from all-time high (ATH) valuations, painting a grim picture for crypto enthusiasts.

The bottom line manifests in the total crypto market capitalization standing at a robust $2.28 trillion, according to the weekly chart. The world watches as these new tokens wend their way in the volatile, yet alluring, world of crypto.