Bitcoin’s ascent is driving major developments in the crypto market. Since April, over a million new tokens have emerged. Memecoin projects are experiencing a mix of excitement and scrutiny within the community.
As exciting changes unfold in the crypto world, Bitcoin’s surge is paving the way for important advancements. Starting in April, more than a million new tokens have popped up in the crypto sphere. Ethereum has seen over 370,000 new tokens, and Solana has welcomed over 640,000, mostly memecoins.
Rise of Memecoins: Ethereum and Solana Witness Token Explosion
Since April 1, the Ethereum network has seen a staggering 372,642 new tokens launched, with a significant 88% of them debuting on the Coinbase-supported Layer-2 network Base. This surge in activity on the Layer-2 network is primarily attributed to enthusiasts seeking low-cost avenues to bolster new memecoin projects.
Coinbase director Conor Grogan highlighted in a recent post on X that this figure represents a twofold increase compared to the total number of tokens created on Ethereum between 2015 and 2023. Concurrently, data from L2beat reveals a remarkable 630% surge in the total value locked (TVL) on Base since the start of 2024, largely fueled by the burgeoning enthusiasm surrounding memecoin ventures.
Meanwhile, Solana has also witnessed a significant influx of new tokens, with 643,227 tokens created during the same period. According to analytics platform Step Finance, the majority of these new tokens were generated amidst the hype surrounding memecoin projects.
The Dune Analytics dashboard, which monitors new tokens launched on the Solana-based memecoin platform Pump fun, reports that out of the 643,000 new tokens launched on Solana, a substantial 466,914 were memecoin projects. CoinMarketCap’s latest data reveals that the majority of the newest 500 tokens added to its platform in the past 30 days also belong to the category of memecoins.
Memecoin Mania: Concerns Rise Amidst Explosive Growth
CoinGecko, a prominent crypto analysis platform, has recently introduced a dedicated category for memecoins, listing over 600 tokens with a combined market value of $52.7 billion. This valuation nearly rivals that of Tether, one of the leading stablecoins in the crypto market.
However, the unveiling of this memecoin category has sparked a wave of criticism within the crypto community. Conor Grogan’s post on X, highlighting the exponential growth of memecoin projects, drew widespread negative reactions. Many in the community argue that such ventures undermine the fundamental values of the crypto space.
Furthermore, concerns have been raised regarding the surge in new memecoin listings, with some analysts and investors labeling the phenomenon as spam. There are allegations of automated processes, such as sniper bots, being used to rapidly generate and promote new memecoin projects in hopes of achieving rapid success.
A study conducted on the matter revealed alarming findings. It showed that one in every six new memecoin projects launched on the Base network was created with fraudulent intentions. Additionally, over 90% of these projects were found to have security vulnerabilities, raising serious concerns about the safety and legitimacy of such ventures.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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