As a researcher with a background in blockchain technology and crypto economics, I’ve been closely monitoring the explosive growth of new tokens, particularly memecoins, on Ethereum and Solana. The data presented in this article is alarming, to say the least.
Approximately 1 million new digital tokens have emerged since the beginning of April, with around 370,000 of these tokens making their debut on Ethereum. Concurrently, roughly 640,000 new tokens, predominantly memecoins, came into existence on Solana.
As a crypto investor, I’ve noticed an impressive surge in new token launches on the Ethereum network since April 1. A staggering total of 372,642 tokens have been introduced during this period. Amongst these, an astonishing 88% or approximately 327,553 tokens, were launched on Coinbase’s layer-2 blockchain, Base. The popularity of this low-cost network has soared, attracting a multitude of ‘degen’ investors eager to create the next memecoin sensation.
In a post on X dated May 14, Coinbase director Conor Grogan mentioned that a figure comparable to this was cited, indicating that it represented double the number of Ethereum tokens generated during the eight-year span from 2015 to 2023.
According to L2beat, the total value locked on Base has experienced a significant increase of approximately 630% since the start of this year. This growth can largely be attributed to heightened excitement and interest in memecoins.
As a crypto investor, I’ve noticed an intriguing development on the Solana blockchain. According to the data I’ve accessed from analytics platform Step Finance, approximately 643,227 new tokens came into existence within the same timeframe that I was observing. This is quite a substantial number and it will be interesting to see how these tokens will perform in the market.
As an analyst, I’ve examined the data from a Dune Analytics dashboard that monitors new token launches on Solana’s memecoin platform pump.fun. Out of the 643,000 freshly minted tokens, approximately 73.5% were identified as memecoins.
As a researcher, I would express this information by saying: “I’ve recently discovered that over half of the 500 newest cryptocurrencies listed on CoinMarketCap within the past month can be categorized as memecoins.”
The cryptocurrency analysis platform, CoinGecko, introduces a new memecoin classification featuring over 600 coins, amassing a total market value of around $52.7 billion. Approaching half the market capitalization of Tether’s USDT ($103.4 billion).
As a crypto investor, I’ve seen my fair share of controversial X posts in the community, and Grogan’s recent one sparked quite a reaction. Many investors expressed their concerns that memecoins have negatively impacted the value of cryptocurrencies as a whole.
As a researcher examining this issue, I’ve come across the perspective that the decentralized finance (DeFi) space has had a “detrimental effect” due to an increase in scams and rug pulls. This means that funds could have been channeled towards more legitimate projects instead. Regrettably, these funds are now in the hands of fraudsters who will convert them into traditional currency for their gain.
Some people have referred to the sudden increase in new memecoins as a “flood of spam created by farming bots” aimed at quickly acquiring these coins in anticipation of a price surge.
As a crypto investor, I was alarmed to discover, through the meticulous work of CryptoMoon’s investigation in April, that an unsettling one in six newly emerging Base memecoins turned out to be scams. Furthermore, over 90% of these coins harbored vulnerabilities that could potentially put investors at risk.
In the first quarter, according to a report from CryptoMoon released in April, memecoins drew significant criticism but still emerged as the top money-making cryptocurrency trend.
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2024-05-15 08:34