Over a million new tokens launched since April

Last updated: May 15, 2024 02:41 EDT | 2 minutes of reading

The cryptocurrency market has seen the launch of more than a million new tokens since the beginning of April.

Ethereum And Solanain particular, have been at the forefront of this token frenzy, with Ethereum hosting over 370,000 new tokens and Solana boasting a staggering 640,000 new tokens, mostly made up of memecoins, according to Dune Analytics. dashboard.

On the Ethereum network, 372,642 new tokens have been created since April 1.

Coinbase base attracts majority of new tokens

It should be noted that 88% of these tokens, or 327,553, were launched on CoinbaseLayer 2 blockchain foundation of.

The increase in activity on the layer 2 network can be attributed to the growing interest in memecoins, with users attracted by the inexpensive environment for creating these types of tokens.

In fact, Coinbase director Conor Grogan pointed out that the number of tokens created on Base in this short time frame is double the total number of tokens created on Ethereum between 2015 and 2023.

Simultaneously, Solana has seen a significant influx of new tokens, with an incredible 643,227 tokens created since April.

Of these, approximately 466,914 tokens were memecoins, according to Step Finance data.

The popularity of memecoins on Solana is evident, as a dedicated dashboard tracking the number of new tokens launched on the Solana-based memecoin platform, pump.fun, confirms the trend.

The rise of memecoins has sparked mixed reactions within the crypto community.

Some argue that the proliferation of memecoins has had a negative impact on the industry, leading to an increase in scams and rug pulling.

Critics view the abundance of memecoins as a diversion of funds to more legitimate projects. They claim that fraudsters are now holding real money that could have been invested in projects with real potential.

The increase in new memecoins has also sparked concerns about spam and the use of sniper bots.

These automated bots, designed to quickly acquire new memecoins in hopes of profiting from a possible breakout, have been seen as a hindrance to the ecosystem.

They contribute to the perception of memecoins as a speculative and volatile segment of the market.

Despite the criticism and concerns regarding memecoins, they have proven to be a profitable story in the first quarter of the year.

Solana Meme Coin Season Presales Raises $150 Million

The surge in Solana coin presale scams comes as these events have brought together a considerable number of people. the staggering sum of $150 million in SOL from only 33 presales.

Despite the lure of quick wins, analysts have pointed out that many of these projects, often promoted by small accounts, are either dubious scams or outright scams.

Additionally, the lack of transparency and accountability within the coin space on Solana increases risk for investors due to the prevalence of rug outs and disappearing funds.

Andrei Grachev, Managing Partner of DWF Labs, also recently warned against such token presales.

“This ‘sending coins to this address as a presale’ reminds me of the ICO boom in 2017,” he wrote on X.

“It always happens when a lot of people get rich by accident. It would be FOMO until the money changed ownership. Remember, you made money because someone made bad decisions.

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