500,000 cryptocurrencies were launched on Solana in just one month
Solana has stood out for closing May with the largest number of new tokens on a monthly basis in the history of cryptocurrency networks. This is indicated by data from the on-chain explorer The Block.
According to the explorer, 455,000 tokens were launched on Solana in May. To put it in perspective, the closest monthly amount to this was recorded by BNB Chain in 2021 and Base previously in 2024 with around 250,000 each. This comparison can be seen in the following graph.
With this increase, the data shows that Solana has been the site of the launch of 1.1 million new tokens so far in 2024. This has been partly motivated by the Pump.fun application, which allows these cryptoassets to be created quickly, unleashing the birth of various memecoins.
It is necessary to know that, although both cryptocurrencies and tokens are cryptoassets, they are not the same (although they are occasionally used synonymously). The main difference is that the former are run on their own network, while the latter are not. This means that networks like Solana can not only have their cryptocurrency, SOL, but also multiple tokens, such as those mentioned in this news.
Austin Federa, head of strategy at the Solana Foundation, highlighted that this network is designed to support high performance with low transaction fees. “The massive increase in tokens on Solana is a consequence of these features, which brings the cost of experimentation and creation of new ideas to almost zero,” he said.
According to The Block, most of Solana tokens are memecoins, since these crypto assets that pay tribute to something comical in the ecosystem are booming. Among them, some of the largest in the niche are found on the network, such as Dogwifhat (WIF), BONK and Book of Meme (BOME). This can be seen below.
Currently, the memecoin market has a capitalization of USD 62.1 billion across all networks, including Solana. Particularly, this niche has gained great interest in recent years due to the mood of the ecosystem and the lack of cryptoassets with utility projects.
Some specialists consider that The rise of this niche is due to existing regulation. “It allows memecoins to thrive while cryptocurrency companies and blockchain tokens with more productive use cases face obstacles,” said investment firm a16z crypto.
One sector of memecoins that has recently gained traction is one that pays tribute to political issues tied to the US presidential election scheduled for 2024, such as MAGA (TRUMP) in Solana.
Likewise, it distinguishes Solana’s memecoin, GameStop (GME), for registering an increase of more than 2,000% in the last month. As reported by CriptoNoticias, its rise occurred due to the return of Roaring Kitty, an account used on the social network X by the American analyst and investor Keith Gill.
Roaring Kitty is recognized for leading a campaign by retail traders in 2021 against institutional investors who were betting on the disappearance of the video game company, GameStop. The initiative led to huge profits, something to which the GME memecoin, which was launched this year, pays homage.
