The increase in purchases, sales, interactions and conversations surrounding the crypto space indicates a growing interest in the ownership and trading of crypto assets.
This spike in interest amounts to a large number of new tokens created in the last 30 days.
The explosive growth can also be attributed to the rapid development in digital asset technology and the much-admired benefits attached to owning these assets.
From the first of April, Ethereum (ETH), one of such broad networks, has seen the creation of over 370,000 new tokens. Over 80% of this number is said to be the Coin base layer-2 Blockchain base.
Solana (SOL) is not left out of this influx of new tokens. In the last 30 days, Solana (SOL) has experienced a large chunk of new tokens, popularly the meme coins.
This spike in interest can serve as a metric for quantifying the dynamism in the evolution of possession and interaction with digital assets and currency.
According to historical data brought to light by Coin base director Conor Grogan, the spike in the creation of new tokens on the Ethereum (ETH) network in the past 30 days supersedes the number of tokens created on the Ethereum (ETH) between 2015 and 2023.
In his words, “nearly 1 million new crypto tokens were created in the last month, a number that is 2x the total number ever made on Ethereum from 2015-2023.”
This surge has not only drawn more interest in crypto but also translates to a surge in the Total Value Locked (TVL) by around 630% since April 2024. This is all primarily driven by the memecoin movement.
Solana (SOL) witnessed a staggering 400,000 new coins in the last 30 days, translating to 20,000 new Solana tokens daily. This has made memecoin on the Solana network very popular.
A report by CoinGecko indicates that the creation of new crypto tokens has been felt, and on average, 5300 new tokens are launched daily.
With its current record, 2024 is set to surpass 2023’s record of 0.83 million new tokens in that year. With the evolution of digital technology, there are speculations of concern over a higher spike in new tokens and the case for sustainability of these tokens considering the introduction of a real-world assets chain.
Industry reactions and concerns
The crypto space has generated varied responses and worries about this surge, similar to other areas.
With the rise of memecoins grabbing the market's attention, critics are worried about the potential increase in scams and rug pulls due to the proliferation of memecoins. Moreover, the shift of funds from more legitimate tokens to speculative ones is impeding investments in legitimate tokens.
Critics are also alarmed by the increase in the use of sniper bots. These bots swiftly acquire rising memecoins with the hope of making quick profits. These behaviors have characterized memecoins as a highly volatile venture within the crypto landscape.
Many critics have also become concerned about the sustainability and security of these new digital assets, as they are easily susceptible to market turns and twists that can lead to losses.
As the crypto landscape continues to evolve, many are tasked with navigating these murky waters with caution to ensure their continued stay above the red candles.