TechFlow news, on February 16, according to Crypto.news, the cryptocurrency market saw a surge in new token creation in January, with 600,000 new tokens minted—12 times higher than the monthly average of 50,000 tokens minted between 2022 and 2023. The acceleration in token creation began in the fourth quarter of 2024, when monthly minting reached 400,000, then jumped to a record high in January. Blockchain networks and decentralized exchanges (DEXs) are also expanding rapidly. Data shows that approximately 5 to 10 new chains go live each month, peaking at 17 new chains in May 2024.
Market analysts warn this surge could lead to liquidity fragmentation. Bobby Ong, co-founder of CoinGecko, acknowledged the potential downsides: "There are too many tokens, and each one fragments traders' limited attention and liquidity. That's why we haven't seen the massive rallies observed in previous cycles."
