- The monthly number of newly minted tokens on Solana has reached a level never seen by any other network.
- The ease with which anyone could produce a token in a matter of minutes and the popularity of various memecoins were the main causes of this.
In May, developers released about 500,000 tokens on the Solana blockchain in response to reduced entry restrictions and the growing ambition to produce a successful memecoin.
455,000 coins were generated on Solana in May. On the other hand, there are 177,000 tokens on the Ethereum Layer 2 Base and 39,000 tokens on the BNB Chain.
On the Ethereum mainnet and the combined Layer 2 networks Arbitrum and Optimism, fewer than 20,000 coins were created.
The Solana Foundation’s head of strategy, Austin Federa, claims that Solana is intended to be a general-purpose layer 1 with quick finality, large throughput, and incredibly cheap transaction costs.
Because of these characteristics, mass token manufacturing emerges on Solana, thereby eliminating the barrier to experimentation and the generation of new ideas. Token creation on Solana should be as easy as producing information online.
Memecoins make up the majority of Solana tokens because they have drawn interest from the cryptocurrency community. This pattern follows the quick ascent to the top of the cryptocurrency market of many Solana-based memecoins, including Dogwifhat, Bonk, and Book of Meme.
Pump.fun, a website that lets users create tokens with a few clicks, deserves some of the credit for the success. It encouraged the development of many more tokens over the previous few months by making it more easier for anyone to launch a token; thus far this year, Solana has seen the introduction of 1.1 million new tokens.
Before the next US election, political memecoins like Jeo Boden and Doland Tremp found success thanks to the token creation website. Last week, following Trump’s conviction on 34 felony counts of falsifying company records, political memecoins saw a sharp increase.
Because memecoins and Pump are so popular, Solana is presently the best blockchain for introducing new currencies, according to Steven Zheng, director of research at The Block Pro.Enjoyable.It remains to be seen if Solana can gain more mindshare for token releases than memecoins.
Famous people with large fan bases, such as Iggy Azalea and Caitlyn Jenner, have just launched Solana-based coins, capitalizing on how quickly the value of these tokens rises.
Base and Solana to BNB Chain
Prior to surpassing Base network, which has also experienced increased activity recently, Solana had to take the lead in the quantity of freshly produced tokens in May. Solana saw only 229,000 additional tokens in April, compared to Base’s 240,000.
Formerly the preferred network for introducing new tokens, BNB Chain has passed the torch to both networks. In 2021 and 2022, BNB Chain had a monthly average of 95,000 token creations. However, since their high in May 2021, these numbers have been gradually declining.
Since 2017, a total of seven million tokens have been introduced across the six blockchain networks. With 3.7 million tokens, BNB Chain is still ahead, followed by Solana with 1.4 million, and the Ethereum mainnet with just under a million tokens.
One indicator used to monitor cryptocurrency ecosystems is the quantity of freshly minted tokens. It is more representative of lower-cost, higher-throughput chains. The value accumulated for each token is not taken into consideration. Because the majority of tokens will be illiquid and quickly forgotten, it’s also a bit of a vanity statistic.
Nevertheless, it does show the locations of blockchain activity. This is not going to slow down anytime soon, as blockchain networks are always striving to get cheaper and faster.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
