Since the beginning of April, the cryptocurrency market has seen a surge in new token creation, with over one million new tokens coming into existence. 

Ethereum alone has welcomed over 370,000 new tokens, while Solana has seen the launch of more than 640,000 new tokens, predominantly memecoins.

During this period, the Ethereum network has introduced 372,642 new tokens, with a significant 88% of them being launched on Coinbase’s layer-2 blockchain Base. 

This increase in token creation activity on the layer-2 network can be attributed to the growing interest in creating memecoins at a lower cost.

The total value locked (TVL) on Base has seen an astounding surge of around 630% since the beginning of 2024. This remarkable increase has been largely attributed to the growing frenzy for memecoins. 

Additionally, during the same period, an impressive 643,227 new tokens were introduced on the Solana network, as revealed by data from the analytics platform Step Finance.

Grogan’s recent post has triggered a wave of negative reactions from the cryptocurrency community. Many have argued that memecoins have significantly devalued the overall concept of cryptocurrency. 

One commenter went as far as to label it a “net negative” due to the surge in scams and rug pulls. They emphasized that the substantial funds diverted towards these fraudulent activities could have been invested in more substantial and legitimate projects, but instead, they have fallen into the hands of scammers who are likely to convert them into fiat currency.