The crypto market is experiencing a real frenzy around memecoins. Since April 1, more than a million new tokens have been launched, almost half of them on the Solana network alone. A trend that arouses as much enthusiasm as criticism.
The memecoin frenzy is in full swing
The crypto market has seen an explosion in the number of new tokens since April 1, 2024, with more than 372,000 tokens created on Ethereum, mainly on Coinbase layer 2, and more than 643,000 on Solana, including a large majority of memecoins. .
Conor Grogan, director of Coinbase, also pointed out that the number of tokens created on Ethereum in one month represented double those created between 2015 and 2023.
This frenzy for memecoins has led to a significant increase in the total value locked (TVL) on Base, which has jumped 630% since the start of the year. CoinMarketCapwhich lists the 500 most recent tokens, confirms this trend, with a predominance of memecoins.
CoinGecko even created a category dedicated to memecoins, which now represent a total market capitalization of $52.7 billion.
A controversial trend within the crypto community
The memecoin craze is sparking strong reactions within the crypto community. Many consider this craze a “net negative” because it leads to a proliferation of scams and diverts funds that could have financed more legitimate projects.
In addition, some denounce the spam generated by “sniper bots” seeking to automatically pick up new memecoins in the hope of a breakthrough.
A investigation of Cointelegraph also revealed that one in six new basic memecoins was a scam and that more than 90% presented vulnerabilities. Despite these concerns, memecoins were the most profitable cryptocurrency in the first quarter of 2024.
In short, the explosion of new tokens, driven by the memecoin mania, raises questions about the evolution of the market. While some see it as a way to make easy money, others fear the proliferation of scams and the flight of investments to the detriment of credible projects.
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