According to Koingko co-founder Bobby Ong, the Cryptocurrency Market saw an increase in new tokens in January.
According to ONG, 600,000 new tokens were mined. This is twelve times the 50,000 monthly tokens created from 2022 to 2023.
Acceleration in tokens began in the fourth quarter of 2024; The monthly number reached 400,000 before jumping at the record levels of January.
ONG attaches this development responsible for many factors, including the rise of token incubator platforms such as pump. Fun, a startup that operates on Solna and enables users to make meme coins without the need for technical expertise.
Sunpump, a rival, which operates on Tron.
“If it can be token, it will be tokened,” said, “said, pointing to the substance-based assets.
Blockchain networks and decentralized exchange (DEX) also multiply quickly. With the peak of 17 new chains in May 2024, the monthly starts showing five to 10 new series. In addition, 89 new dexs were tracked alone in March 2024.
‘Many tokens …’
Market analysts warned that this spread could lead to fluidity fragmentation. Responding to concerns about the market influence, ONG acknowledged potential deficiencies: “A lot of tokens, each also diluted the limited attention and liquidity of the traders. So we do not see the great Alt pumps of the previous cycles. “
At current growth rate, coingcko can reach the total number of tokens One billion within five years,
This growth raises questions about the stability of the market and the ability of the cryptocurrency ecosystem to support such a variety while maintaining healthy business versions and value search.
The trend reflects overall changes in the cryptocurrency market structure, where low technical obstacles and automated construction equipment have been released.
This can potentially affect the cost of market efficiency and focused liquidity that defines previous market cycles.
Danger of overgrowth
Rapidly crowded crypto landscapes have started increasing concerns. While the pump. Fun and Sunpump have made it easier than ever to launch tokens, the latter floods of meme coins increase the risk of market weakening and scams.
Investors, with spreading their wealth in a large number of assets, the liquidity is fragmented, and attention is overcome by more legitimate projects.
Currently, there are traction through propagation rather than tokens with no real use cases, causing value erosion. Critics convicted President Donald Trump for trying to capitalize on this trend with the launch of his meme coins, official Trump (Trump), before his swearing in.
This trend has also paved the way to draw a rug – such schemes where the creators leave a project after raising funds.
Aggressive investors recently filed a case against the viral star Hailey Welch (aka Hawk Tuah Girl) after the crasher of his Hawk coin. These investors accused him of promoting an unregistered security.
Another 2024 incident included rapper Curtis James Jackson III (aka 50 cents), who said that his website and X account was compromised to advertise a fake cryptocurrency coin called “Gunit”. Hackers used their big fan base to increase the value of the token, before it crashed by $ 0.00016.
Mem coin boom often attracts speculative traders, which focuses on short -term profits rather than long -term development. These speculation leads to unstable pumps and later to accidents, which destroy the trust of the investor. And to track a lot of coins, investors are increasing the chances of falling for poorly manufactured schemes.
Blockchain networks are also feeling stress. In particular, Solana faced a significant network congestion during its meme coin explosion, affecting the growing transaction fee and slow overall user experience at the slow pace.
As the meme coins are flooded in the market, the risk of regulatory investigation increases. Increasing concern over scams and fraud may trigger a clampdown from governments, which will only make compliance with legitimate projects difficult.
