Crypto:
29856
Bitcoin:
$67.830
% 2.15
BTC Dominance:
%52.9
% 0.21
Market Cap:
$2.53 T
% 1.90
Fear & Greed:
76 / 100
Bitcoin:
$ 67.830
BTC Dominance:
% 52.9
Market Cap:
$2.53 T

Memecoin Mania: Solana Dominates with Over 640,000 New Tokens Since April

Solana

On April 1, the Solana network launched over one million new tokens, the majority of which were memecoins. Solana has generated over 640,000 new tokens, while Ethereum has witnessed the birth of 370,000 new tokens. The Dune Analytics dashboard, which tracks the Solana-based memecoin platform, has identified 466,914 of the memecoins on Solana’s new tokens as mostly humorous internet memes.

Ethereum’s Token Boom

In the case of Ethereum, 372,642 new tokens have been in circulation since April 1. In summary, Coinbase launched 327,553 tokens, totaling 327,553, on its layer-2 blockchain base. Crypto enthusiasts, engrossed in creating memecoins during the low-cost network period, are responsible for this spike. Conor Grogan, the head of Coinbase, stated in a May 14 post on X that Ethereum produced twice as many tokens between 2015 and 2023.

Impact on Total Value Locked (TVL) and Market Trends

According to L2beat, the memecoin fad has caused the Total Value Locked (TVL) on Base to increase by around 630% since the beginning of this year. The same thing is also on the other side, where CoinMarketCap’s list of the 500 new tokens added in the last 30 days reveals a dominance of memecoins.

CoinGecko, a crypto analytics platform, has come up with a memecoin category that contains over 600 coins with a total market capitalization of $52. The latter of the 7 billion accounts for nearly half of Tether’s market capital.

Community Reactions and Concerns

Grogan’s post on X sparked a significant backlash from the crypto community, primarily due to the ongoing memecoin surge. One of the commenters called it a “net negative” because of the increase in the number of scams and rug pulls; he/she/they stated that the money that could have been used for providing the help is now in the accounts of some scammers. The other individual posited that the surge in new memecoins serves as a form of spam for automated sniper bots.

Memecoins: Profitable Yet Controversial

Although the memecoin has faced many protests, it has nevertheless been the most lucrative crypto story in the first quarter of this year, as claimed. However, research revealed that one in six new Base memecoins were scams, with 90% exhibiting vulnerabilities, intensifying the controversy surrounding these tokens.

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