Solana: 455,000 New Tokens Were Launched in May

In the Solana (SOL) ecosystem, 455,000 new tokens were launched in May alone. This is a record number for the crypto industry. The trend towards many new tokens can also be observed with Base and the BNB Chain.

Investors in Bitcoin and other cryptocurrencies are usually interested in the 100+ cryptocurrencies that have a high market capitalization and corresponding foundation. But parallel to this, there is a trend towards more and more new tokens, which is currently most clearly reflected in Solana (SOL). An incredible 455,000 new cryptocurrencies were launched in the ecosystem in May, according to blockchain data . This is a monthly record that has never been reached before.

It has also become fashionable at Base to set up its own tokens, with 177,000 such projects counted there in May. Until the end of 2023, the BNB Chain was the leading basis for the launch of new coins, and in May this still happened 39,000 times. Observers explain the boom at Solana by saying that the costs of launching a new token there are close to zero and the still young platform pump.fun makes the process extremely simple and fast.

Meme coins dominate the startups at Solana

Solana also has the momentum on its side because various meme coins from BONK to dogwifhat (WIF) are enjoying astonishing success. Political meme coins are also on the rise on Solana, for example under names such as “Joe Boden” or “Doland Tremp”.

Last but not least, celebrities such as Caitlyn Jenner are also trying to make a quick buck with meme coins named after them. However, our overview with infographic makes it clear that the majority of the new tokens have security gaps and caution is generally advised.

A look into the past: Since 2017, around 7 million new tokens have been created in six leading ecosystems. Over this period, the BNB Chain is the leader with 3.7 million, Solana follows with 1.4 million and Ethereum (ETH) became the home of almost 1 million new tokens.

The leading data service CoinGecko, for example, only measures prices for just under 15,000 coins. The competitor CoinMarketCap lists a good 2.4 million cryptocurrencies, but several million of them cannot be taken seriously due to insufficient capitalization, lack of trading volume or other red flags.

Conclusion: Token glut at Solana is a double-edged sword

Austin Federa , head of strategy at the Solana Foundation, welcomes the trend towards more and more different tokens in the ecosystem. Launching a coin should be as easy as creating content for the internet, he argues. The development also proves the performance of the SOL network.

On the other hand, however, it should also be noted that more than 99 percent of these new tokens will soon be forgotten and illiquid, thus representing traps for inexperienced investors. Please make sure you take the time to do your own research if online advertising draws your attention to new coins with supposedly huge profit opportunities – almost always, this is just an experiment or a pure scam.

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(Featured image by Shubham Dhage via Unsplash)

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