Published: 15/05/2024
Last Updated: 19/08/2024 -

Over One Million New Tokens Have Been Released Since April

Close to half of the newly launched tokens, totaling over one million since April 1st, are memecoins generated on the Solana network.

Since the beginning of April, more than 1 million new tokens have been created. Among them, there are more than 370,000 new tokens on Ethereum and more than 640,000 new tokens on Solana, mainly memecoins.

On Ethereum, a total of 372,642 new tokens were issued, of which 88% (i.e. 327,553 tokens) were launched on Coinbase Layer 2 Chain Facility. This boom mainly comes from developers creating new memecoins on layer 2 networks to benefit from low transaction costs. According to L2beat, the total value locked (TVL) on Base has increased by approximately 630% since the beginning of the year, mainly due to the strong growth of memecoin.

New tokens launched on Ethereum and related blockchains. Source: Dune Analytics

Meanwhile, on Solana, there were 643,227 new tokens created during the same period. Of these, 466,914 are memecoins, according to data from analytics platform Step Finance and the Dune Analytics dashboard.

CoinMarketCap listed the 500 newest tokens added to their platform in the past 30 days, with the majority being memecoins. The CoinGecko platform, one of the go-to places for cryptocurrency analysis, currently has a separate category for memecoins, with over 600 listed and a total market capitalization of $52.7 billion. This is almost half of Tether’s total value.

More than 640,000 new tokens have been launched on Solana since April 1. Source: Step Finance

Grogan’s post caused a wave of negative reactions from the cryptocurrency community. Many people believe that memecoin has caused many problems for the value of cryptocurrencies. One commenter called it a “net negative,” agreed that the money could be used for larger projects, and objected to its use for memecoin, noting that it is now in the hands of scammers.

Others see the rise of new memecoins as “snipping bots from the farm”, pointing out that there are many projects designed to automatically collect new memecoins in the hope of profit.

In April, an investigation revealed that one in six new memecoins on Base were scams and more than 90% of them contained vulnerabilities. Despite criticism, memecoin remained one of the most profitable crypto stories in the first quarter of the year..