The cryptocurrency market has been hit with a wave of token creation, with more than a million new tokens launched since April 1st, which is a historic event in the changing world of digital assets. This surge has been mainly driven by the frenzy for memecoins and has been facilitated by the Ethereum and Solana networks, which have focused attention on the growing ecosystem of decentralized finance (DeFi) and non-fungible tokens (NFTs).
Ethereum and Solana lead in token creation
The creation of 372,642 new tokens by the end of April signifies the beginning of a large increase in the token generation activity in Ethereum. Significantly, 88% of the new tokens, 327,553, were launched on Coinbase’s layer-2 blockchain Base. Thus, it shows that many users are now using the low-cost infrastructure of this network to introduce new memecoins and other tokenized assets. This increase in token creation on Ethereum has reached a new high, as Conor Grogan, the Director of Coinbase, points out that the current number of tokens is twice the total number of Ethereum tokens created from 2015 to 2023, which is eight years.
Apart from that, Solana is also a key player in the token creation spree, which has seen a large number of new tokens come up on the network in the same period. Moreover, almost half of these tokens were memecoins, thus indicating that Solana was becoming a platform for fast token deployment and experimentation. The Solana network’s scalability and low transaction fees have attracted many developers and enthusiasts. Thus, the network is becoming increasingly popular in the crypto sphere.
Source: step.finance
Total Value Locked (TVL) surge amid token surge
The huge increase in the number of tokens produced has been matched by the drastic rise of the Total Value Locked (TVL) on Base, which has increased by 630% since the start of this year, as the data from L2beat proves.
Source:l2beat
The exponential increase in TVL indicates a much larger frenzy for memecoins and decentralized finance (DeFi) protocols, as users stick to the burgeoning crypto economy to make a buck. Base’s liquidity boost thus makes it a worthy top contender in the hierarchy of Ethereum Layer-2 solutions.
