Over a million new cryptocurrency tokens, primarily memecoins, have been created since the beginning of April, spread across the Ethereum and Solana networks.
A significant increase in the creation of new tokens has been observed, with Ethereum seeing 372,642 new tokens and Solana a staggering 643,227. Notably, 88% of Ethereum’s new tokens emerged on Coinbase’s layer-2 blockchain, Base, which has become a hub for low-cost memecoin creation.
The surge in new token creation started in April and continued robustly into May, reflecting a growing interest and activity within the cryptocurrency community, particularly in the realm of memecoins.
The activity spans across major blockchain platforms, with Ethereum and Solana at the forefront. The data is monitored and reported by various analytics platforms, including L2beat, Step Finance, Dune Analytics, CoinMarketCap, and CoinGecko.
The explosion of new tokens on Base, a layer-2 solution promoted by Coinbase, was driven by the platform’s lower transaction costs which attracted a flood of developers and investors looking to capitalize on the frenzy for memecoins. Solana’s contribution to the new token landscape primarily involved memecoins, which are playful or joke tokens that mimic popular cryptocurrencies but are often considered less serious investments.
Despite the massive influx of new tokens, the trend has stirred controversy within the cryptocurrency community. Coinbase director Conor Grogan highlighted that the number of tokens created on Ethereum’s Base in recent months exceeded the total from 2015 to 2023, reflecting a surge in speculative activity. This increase aligns with a 630% rise in total value locked on Base, signaling a significant shift in market dynamics.
Critics argue that the proliferation of memecoins detracts from more legitimate projects and increases the risk of scams and financial losses, revealing scams and vulnerabilities in many new Base memecoins. Nonetheless, memecoins have become a popular, albeit controversial, aspect of cryptocurrency trading, representing significant market capitalization and investor interest.
