Solana has established itself as a powerhouse in the cryptocurrency market, dominating new token launches in 2024. As of September 30, Solana accounted for 96,010 new tokens out of a total of 110,180 launched across all tracked chains, representing over 87% of all new tokens appearing on decentralized exchanges (DEXs).
The rise of Solana is visually represented in the latest charts, showcasing a meteoric increase in new token launches from near-zero levels at the beginning of 2024 to consistently exceeding 100,000 launches per month by mid-year.
While Solana leads the charge, the Base blockchain has also witnessed significant activity. Since April, both chains have been in a fierce competition to launch more tokens, collectively accounting for over 80% of new token launches.
The surge in new tokens, particularly on Solana, is largely driven by the explosive popularity of memecoins. Platforms like pump.fun have simplified the process for users to create and launch their own tokens, leading to a wave of speculative activity. Although not all new tokens are memecoins, a significant majority likely fall into this category, buoyed by hype and social media trends.
However, this memecoin gold rush comes with its own set of risks. The recent launch of MOODENG on Solana exemplifies the volatility inherent in this market. Despite initial excitement, MOODENG's performance has struggled, highlighting that even the most talked-about memecoins face challenges in achieving lasting success.
As we approach the final quarter of 2024, all eyes will be on Solana to determine if it can sustain its dominance in new token launches. Will the memecoin craze persist, or are we nearing a saturation point? Only time will tell, but one thing is clear: the landscape of DEXs and token creation is more dynamic and unpredictable than ever.
This excerpt is part of The Block's Data & Insights newsletter, which explores the numbers behind the industry's most compelling trends.
Disclaimer: The Block is an independent media outlet providing news, research, and data. As of November 2023, Foresight Ventures is a majority investor in The Block. Foresight Ventures also invests in companies within the crypto sector. The Block operates independently to deliver objective and impactful information about the crypto industry.
