Since April 1st, nearly half of the one million new tokens introduced have been memecoins developed on the Solana network.
Since the beginning of April, the creation of new tokens has surged past the one million mark. Among these, Ethereum has seen the emergence of over 370,000 tokens, while Solana has witnessed the launch of more than 640,000 tokens, predominantly memecoins. On Ethereum, specifically, 372,642 tokens have been introduced since April 1, with a significant 88% of them debuting on Coinbase’s layer-2 blockchain Base. This spike in token activity on the layer-2 network is primarily attributed to enthusiasts leveraging its cost-effectiveness to mint new memecoins.
In a recent post on X, Coinbase director Conor Grogan referenced a comparable statistic, highlighting that it surpassed the number of tokens generated on Ethereum from 2015 to 2023 by a factor of two. According to L2beat, the total value locked (TVL) on Base has skyrocketed by approximately 630% since the start of 2024, largely propelled by heightened enthusiasm for memecoins. Additionally, Step Finance data reveals that 643,227 new tokens came into existence on Solana within the same period.
Out of the 643,000 new tokens introduced on Solana, a staggering 466,914 were categorized as memecoins, as reported by a Dune Analytics dashboard monitoring token launches on the pump.fun platform, known for its focus on memecoins.
CoinMarketCap showcases the latest 500 tokens incorporated into its platform within the past month, with a predominant focus on memecoins. CoinGecko, a crypto analytics platform, has introduced a dedicated memecoin category featuring over 600 coins, amounting to a combined market capitalization of $52.7 billion. This figure nearly equals half of Tether’s market cap, which currently stands at $1.00.
Grogan’s recent post stirred up a wave of criticism within the crypto community, with many arguing that memecoins have undermined the integrity of the crypto space.
One commenter described them as a “net negative,” attributing this to the proliferation of scams and rug pulls. They lamented the diversion of real funds from potentially more substantial projects into the hands of scammers who convert them into fiat currency.
Others characterized the surge in new memecoins as a magnet for automated “spam to farm sniper bots,” programmed to swiftly acquire new memecoins in anticipation of a price surge.
In April, a Cointelegraph investigation revealed alarming statistics: one out of every six new Base memecoins was found to be a scam, and over 90% exhibited vulnerabilities.
Despite facing significant backlash, memecoins emerged as the most profitable crypto narrative in the first quarter, according to a report by Cointelegraph in April.
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