Since April, the cryptocurrency landscape has witnessed an explosion in new tokens, exceeding one million in number. Ethereum saw the creation of over 370,000 new tokens, while Solana witnessed the launch of more than 640,000, predominantly comprising memecoins. Ethereum’s layer-2 blockchain, Base, experienced a surge in token creation, with 88% of new tokens emerging on this platform, driven by increased activity from degens seeking low-cost options.
The surge in token creation has corresponded with a substantial increase in total value locked (TVL) on Base, which has skyrocketed by around 630% since the beginning of 2024, largely fueled by the memecoin frenzy. Similarly, Solana saw a significant influx of new tokens, with over 643,000 created within the same timeframe, the majority being memecoins. CoinMarketCap and CoinGecko have added hundreds of new memecoins to their platforms, reflecting the growing popularity and market capitalization of this segment.
However, the rapid proliferation of memecoins has sparked controversy within the crypto community, with concerns raised about the prevalence of scams and rug pulls. Critics argue that the surge in memecoin creation detracts from legitimate projects and exposes investors to significant risks. Despite these concerns, memecoins emerged as the most profitable narrative in the first quarter, underscoring their appeal despite the associated controversies and risks.
