Token Creation Boom: 12x Growth in Two Years
Date: 2025-02-18 Author: Gabriel Deangelo Categories: CRYPTO PAYMENTS
By October 2024, the number of tokens created per month reached 400,000, while in 2022-2023 this figure did not exceed 50,000, said CoinGecko co-founder Ong. He attributes this jump to a number of factors, including the popularization of platforms for quickly launching memecoins, such as Pump.fun. These services have made coin creation accessible even to beginners, allowing them to instantly turn internet memes into tradable assets.
The lowering barriers to entry has led to an avalanche-like growth in the number of crypto assets, and if the trend continues, about a billion different tokens could be in circulation in five years, Ong predicts.
An additional driver of growth has been the rapid development of the blockchain infrastructure. Every month, five to ten new networks appear, and most of them are compatible with the Ethereum Virtual Machine (EVM), which greatly simplifies their integration. In May 2024, Ong noted the launch of 17 new blockchains, and two months earlier, 89 new decentralized exchanges (DEX) appeared on the market.
However, such a rapid expansion of the ecosystem carries potential risks. Ong expresses concern that an excessive number of new tokens can lead to fragmentation of liquidity. This reduces traders' attention to certain assets and prevents a repeat of the traditional growth of altcoins observed in previous market cycles.
Pump.fun co-founder Alon Cohen also noted that most new altcoins are practically indistinguishable from memtokens, and investors have little interest in their technological basis. At the same time, analyst Michael van de Popp recently pointed out signs of weakening bullish trend in the altcoin segment, which could mean a slowdown in their growth amid market oversaturation.
