By The Numbers: Over 1 Million New Crypto Tokens Launched Since April
16 May 2024 - 1:00PM
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The crypto community created over one million tokens across all
chains in the past month, with Solana and Ethereum leading the
crypto token frenzy. According to Coinbase’s director, these
numbers doubled the tokens created in Ethereum between 2015 and
2023. Related Reading: ‘The Dog Days Are Over’: Cat Memecoins Soar
16.1% After Roaring Kitty’s Return Over 22,000 New Crypto Tokens
Created Daily Coinbase’s director Connor Grogan shared on X that 1
million tokens have been launched since April 1, 2024. The tokens
created in the Ethereum Network account for 36% of the total
number, with 372,642 tokens launched in the past month and a half.
According to Dune Analytics, 327,553 tokens, around 88% of the
total, were launched on the Layer-2 blockchain Base. The surge was
seemingly propelled by the memecoin frenzy that has taken over this
cycle. Additionally, Ethereum and Arbitrum saw a significantly
smaller number of 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 1. Out of
those, 464,563 are memecoins, per Dune Analytics. Moreover, Grogan
highlighted that Solana registers an average of 20,000 new tokens
daily. As reported by Solana Floor, on Monday, the blockchain
reached a new all-time high (ATH) in newly created tokens, with
23,000. This could be attributed to the market pump propelled by
the return of renowned crypto trader Roaring Kitty. Since his
comeback to social media, several new memecoins have been created,
and the top ones have surged. 🚨 BREAKING: Over 23K New SPL Tokens
created on @solana in the last 24 hours, a new all-time high.
pic.twitter.com/cn4ARy0KwC — SolanaFloor | Powered by Step Finance
(@SolanaFloor) May 14, 2024 The crypto community reacted to the
astonishing numbers, with many expressing concerns. One user
pointed out that most of these tokens are “just spam to farm sniper
bots.” He alleged that some people launch tokens “just to rug pull
bots that auto-bought.” Another user playfully added, “The moral of
the story is don’t buy projects created after February 2024.” This
year, investors have seen many project launches promising big
returns. Instead, investors have suffered rug-pull and other scams.
Overabundance Of Altcoins? At the end of April, DeFi researcher and
Web3 investor Thor Hartvigsen pointed out that while only four
months into the year, the market had seen a massive increase in the
supply of altcoins. As a result, this increase accounted for $8.6
billion in additional liquid supply injected into the market.
Hartvigsen added that crypto projects will unlock $70.5 billion
over the years, with many tokens launched in 2023 “also unlocking
this year with many cliffs ending.” Moreover, the market observer
highlighted that the average float in market capitalization and
fully diluted valuation (FDV) for the tokens launched in Q1 2024
was just 13.6%. To him, this is only “the tip of the iceberg,” as
the crypto market will continue to be flooded with new supplies and
tokens. He offered a list of categories he believes will see the
greatest number of new tokes this year. His list included Modular
Infrastructure protocols, Liquid Restaking Tokens (LRTs), Bridges
and Cross-Chain Messaging solutions, and Perpetual Decentralized
Exchanges (DEXes). Related Reading: Pepe Power! Meme Coin Surges On
Back Of GameStop Nostalgia On 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 by 63.6% on
average. According to the researcher, tokens like JUP, ONDO, and
STRK have registered a 49.2%, 30.5%, and 74.2% decrease from ATH
prices. Featured Image from Unsplash.com, Chart from
TradingView.com
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