Memecoin Frenzy: More than One Million New Tokens Released Since April

The cryptocurrency market has experienced a significant increase in token creation, with over one million new tokens launched since April. This surge is largely driven by the proliferation of memecoins, raising concerns about speculation and potential scams.

Notably, nearly half of the newly created tokens, exceeding 640,000 tokens, were launched on the Solana network. Ethereum, the leading smart contract platform, also saw a substantial influx of new tokens, with over 370,000 created during the same period.

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This surge in token creation is particularly apparent on Coinbase’s layer-2 blockchain, Base, which has seen an 88% increase in token creation compared to Ethereum, with 372,642 new tokens launched. The low transaction fees offered by Base are believed to be a major factor attracting users to capitalize on the memecoin frenzy.

Conor Grogan Submission on New Tokens

Coinbase director Conor Grogan highlighted the magnitude of the current memecoin craze, noting that the number of tokens created on Base surpassed all tokens created on Ethereum from 2015 until 2023.

Additionally, the Total Value Locked (TVL) on Base has surged by approximately 630% since the beginning of 2024, driven primarily by the memecoin mania that has gripped the crypto space.

Solana has also experienced a significant influx of these memecoins, with 466,914 out of 643,227 tokens falling into this category, according to data from Step Finance. This proliferation of memecoins has led to the creation of dedicated categories on platforms like CoinGecko, listing over 600 coins with a combined market capitalization of $52.7 billion. CoinMarketCap has also added a category specifically for memecoins, listing the 500 newest tokens added to its platform in the last 30 days.

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However, the memecoin trend has its critics within the cryptocurrency community, who view memecoins as a negative development due to their susceptibility to scams and “rug pulls” (abrupt abandonment by developers). These critics argue that investments in memecoins could be better directed towards more established and legitimate projects.

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