15 May

Since the beginning of April, there has been a surge in the creation of new tokens, surpassing 1 million in total. Ethereum saw over 370,000 new tokens emerge, while Solana witnessed the launch of over 640,000 new tokens, primarily memecoins.

Of the 372,642 new tokens introduced on the Ethereum network, a significant portion, 327,553, were launched on Coinbase's layer-2 blockchain, Base. This surge in activity on Base was driven by increased interest from users creating memecoins attracted to the network's low-cost transactions.

Conor Grogan, a director at Coinbase, highlighted that the number of tokens created on Base since April surpassed the total created on Ethereum over an eight-year period from 2015 to 2023.

On Solana, 643,227 new tokens were created during the same timeframe, with a substantial portion, 466,914, categorized as memecoins by a dashboard tracking tokens launched on Solana-based platform pump.fun.

The proliferation of memecoins has drawn criticism from the crypto community, with concerns raised about scams and rug pulls draining funds that could have been invested in more legitimate projects. Despite this, memecoins emerged as the most profitable crypto narrative in the first quarter, although one in six new Base memecoins in April were identified as scams, with over 90% having vulnerabilities.

May 2024, Cryptoniteuae

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