Crypto Sector Sees Explosion in New Tokens, Meme Coins Lead the Charge – Meme Coin News
Meme Coin News – Coinbase’s Director, Conor Grogan, recently disclosed a startling statistic: nearly 1 million new cryptocurrency tokens emerged last month, a figure doubling the total created on the Ethereum blockchain between 2015 and 2023. This development underscores the volatile and often precarious nature of investing in new crypto ventures.
New Meme Coins Dominate Crypto Landscape
Grogan highlighted these figures via the Dune dashboard chat, signaling a significant expansion in the crypto sector. The bulk of this surge in token creation occurred predominantly on the Ethereum and Solana blockchains. Ethereum saw the emergence of 376,642 new tokens, while Solana experienced an average daily creation rate of over 20,000 tokens.
A noteworthy revelation is that 886% of the new tokens on the Ethereum blockchain, totaling 327,553, debuted on Coinbase’s layer-2 network, Base. This platform has become a magnet for developers, particularly those focusing on meme coins, due to its reduced operational costs.
Additionally, the Total Value Locked (TVL) on Base has surged by 627% since the year’s inception, now standing at an impressive $5.4 billion, according to L2beat. Meme coins constitute the primary driving force behind this surge.
However, the rapid proliferation of meme coins has drawn criticism from within the crypto community. Many perceive these tokens as high-risk ventures, often exploited by scams targeting trading bots and inexperienced investors.
“One X user commented on Grogan’s post, ‘Most of them are just spam to farm sniper bots. I saw a guy launching tokens with gibberish names on base just to rug-pull bots that auto-bought.'”
Moreover, the regulatory environment surrounding meme coins has been less stringent compared to more traditional or innovative crypto projects. Chris Dixon of Andreessen Horowitz has criticized this lax regulatory approach, arguing that it fosters an ecosystem ripe with trivial projects at the expense of more substantial blockchain-based solutions.
Investing in this market entails substantial risks. Crypto Koryo, a data scientist, emphasizes the high-risk, low-reward nature of meme coin investments. The barrier to creating new coins has significantly lowered, leading to market saturation.
“Back then, deploying an ERC-20 token wasn’t something the average Joe could easily do. But today, anybody can do it,” states Koryo.
Koryo advises investors to diversify substantially if they choose to engage with meme coins. He warns that without adequate diversification, an investor’s portfolio could plummet to zero.
Furthermore, on-chain sleuth ZachXBT recently reported that developers abandoned several meme coin projects on the Solana blockchain, resulting in a staggering $26.7 million loss for investors.
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