- Monthly token generation increased from 50K during the period 2022-2023 to 600K by January 2025, indicating an explosive surge in blockchain transactions.
- Increased token supply disperses the liquidity, shapes the price moves, and minimizes the explosive altcoin rallies seen in past cycles.
- Rising blockchain use, memecoin trends, and increased DeFi growth are propelling the explosive pace of token creation.
The number of tokens created has risen dramatically, January 2025 setting an all-time record of creating 600,000 tokens. Bobby Ong noted this 12-fold increase from 2022, triggering discussions over whether it has increased market liquidity and also captured the spotlight from traders.
Rapid Acceleration of Token Minting
Bobby Ong, co-founder and COO at coingecko, observed that, from 2022 through 2023, an average of 50,000 tokens per month were created. The period was steady, with intermittent fluctuations, but token creation continued smoothly. But from mid-2023, there was a change seen as there began an increased level of blockchain activity.
By Q4, 2024, token creation had grown to 400,000 per month, an explosive rate. The explosive rate continued well into January, 2025, when a record-breaking 600,000 tokens had been created in one month, showing greater utilization of the blockchain, as well as speculative creation.
Market Fragmentation and Liquidity Concerns
Despite the boom, Ong observed that the tokens’ surge is depleting both liquidity and trader focus. In previous cycles, when there were less tokens, concentrated price moves had breathing space, while today oversaturation implies capital gets diluted over an incredibly vast number of tokens.
This dilution also explains the absence of prominent altcoin booms seen in previous bull cycles. Because there are so many tokens competing for the same investor base, price momentum is muted compared to previous trends.
Evolving Market Trends
The token boom signifies an advancement in blockchain dynamics, as builders capitalize on greater adoption. But the scope of new assets calls into question whether it is viable, as well as whether there exists adequate investor demand. The explosive boom reflects trends toward memecoins, DeFi, and new blockchain ecosystems driving greater token creation.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
