Over 1 million new tokens, most of which are memecoins, were launched on various blockchain networks since the beginning of April 2024, with Solana and Ethereum leading the pack.
Data from the Dune Analytics Dashboard reveals that Ethereum hosted over 370,000 new tokens during this period, while Solana boasted over 640,000 new tokens on its network.
About 88% of the new tokens on Ethereum were launched on Coinbase’s layer-2 blockchain Base. This surge in activity on Base has been driven by entities trying to capitalize on the network’s cost-effectiveness to create new memecoins.
In a social media post on May 14, 2024, Coinbase director Conor Grogan highlighted that the number of tokens created on Base was double that of what was created on Ethereum between 2015 and 2023.
According to L2beat, the total value locked (TVL) on Base has surged by approximately 630% since the beginning of 2024. Notably, Coinbase launched the Layer 2 network in August 2023.
Similarly, Solana experienced a significant influx of new tokens, with 643,227 created in the same timeframe; 466,914 were memecoins, according to data from Step Finance. Data from the Dune Analytics dashboard tracking the number of new tokens launched on Solana-based memecoin platform pump.fun also reflects this trend.
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Meanwhile, CoinMarketCap added 500 new tokens to its tracking dashboard in the last 30 days, a significant portion being memecoins. Crypto Analytics platform CoinGecko also recently introduced a memecoin category, listing over 600 coins with a total market capitalization of $52.7 billion, almost half of Tether’s market cap. However, this exponential rise in memecoins has triggered criticism within the crypto community.
Grogan’s post sparked a wave of negative responses, with many in the crypto community expressing concern over the impact of memecoins on the broader crypto market. Some argued that these projects had diverted real money away from legitimate projects and contributed to the increasing incidents of scams and rug pulls. Others viewed the spike in new memecoins as a tactic to manipulate the market through automated bots, raising concerns about the market’s integrity.
Disclaimer: This report is intended solely for informational purposes and should not be considered trading or investment advice. Nothing herein should be construed as financial, legal, or tax advice. Trading or investing in cryptocurrencies carries a considerable risk of financial loss. Always conduct due diligence.
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