News
This is how many new tokens and meme coins have appeared on Ethereum and Solana since April 1
Since the beginning of April, over a million new tokens have been created, with over 370,000 appearing on Ethereum, due to activity on Coinbase’s Layer 2 network, Base.
Solana leads the way with the creation of over 640,000 new tokens, mostly meme coins.
Base sees increase in user activity
According to data shared by Coinbase director Conor Grogan, 372,642 new tokens have been launched on the Ethereum network alone since April 1, with 88% of them on Coinbase’s Layer 2 blockchain, Base.
This increase in activity on the Layer 2 network is driven by users flocking to the low-cost platform to create new meme coins. Interestingly, the number of tokens created on Ethereum in this short period is double the total number launched between 2015 and 2023.
Base experienced a revival in user activity this quarter. This is evident in Franklin Templeton’s recent report, which highlighted that blockchain has gained substantial traction with SocialFi apps like Friend.Tech. It turned out that several leading crypto-based social applications are being built on the Layer 2 network.
In fact, Base processes around 46% of all SocialFi transactions, making this sector vital to the adoption and growth of the network, according to statistics from the asset manager.
L2BEAT details later revealed this Base is currently positioned as the third largest Ethereum Layer 2 network, boasting $5.48 billion in total value locked (TVL).
New users on Base have been increasing steadily since the beginning of the year, but gained notable traction after March. Dune Analytics data indicated that the daily number of network users increased from 4.6 million in March to 8.9 million in May, reflecting an increase of 92.86% in just two months.
Solana Meme Coin Explosion
Meme coins accounted for the majority of the 643,227 new tokens created on Solana during the same period. Some of them that have recorded massive gains are dogwifhat (WIF), Bonk (BONK), and Slerf (SLERF), among others.
In addition to the Bitcoin ETF spot hype, the meme coin craze has played a crucial role in the current market cycle. Many industry participants have praised this cycle as a “bizarre” result. However, most of these tokens have collapsed or become worthless, with meme coin scams rife not only on Solana but also on Base.
Meanwhile, CryptoQuant co-founder Ki Young Ju recently warned against the hype of meme coins, stating that these assets often overshadow the efforts of dedicated teams working on legitimate products that could drive industry progress.
SPECIAL OFFER (sponsored)
Binance Free $600 (CryptoPotato Exclusive): Use this link to register a new account and receive an exclusive $600 welcome offer on Binance (Full details).
LIMITED OFFER 2024 for CryptoPotato readers on Bybit: Use this link to register and open a $500 BTC-USDT position on Bybit Exchange for free!