Crypto News

Is the liquidity market concern?

The Kruptocurrenci market stated the increase in the new token creation during January, according to the Coingecko Co-Founder Bobby Ong.

According to the ONG, 600,000 new tokens is forced. It is a twelve increase of 50,000 monthly tokens created from 2022. To 2023. years.

The acceleration in the token formation began in the fourth quarter of 2024. Years; Monthly numbers reached 400,000 before jumping on the recorder level in January.

Ong attributes this growth on several factors, including the increase in token incubator platforms such as pumps.fun, starting on saltworks and allows users to create meme coins without the necessary technical expertise.

Sunpump, Rival, which operates in the throne.

“If this can be accurate, it will be tokenized,” he noticed, pointing out the current tokenization of memos and funds based on attention.

Blocking and decentralized exchange networks (DEXS) also multiplies quickly. The data show approximately five to 10 new chains that launched monthly, with a tip of 17 new chains in May 2024. years. In addition, 89 new DEKs were found only in March 2024. years.

‘Too many tokens …’

Market analysts warn that this proliferation could lead to liquidity fragmentation. Appropriate to the concerns about market influence, the ONG recognized potential shortcomings: “Too many tokens, each spread limited attention and liquidity of traders even diluted. So we do not see great Alt Pumps of previous cycles.”

On current growth rate, coingecko projects total number of tokens can reach Billion within five years.

This growth raises questions about the market sustainability and ability to cry the ecosystems to support such variety, retaining healthy amounts of trading and price detection.

The trend shows the total changes in the structure of the cryptocurension market, where the technical barriers and automated tools for creating democratized are reduced.

This could potentially affect the costs of market efficiency and concentrated liquidity defined by previous market cycles.

Hazards overload

More and more cried Kratto Landscape begins to raise concern. While pumps.fun and sunpump made it easier than ever to run the chips, subsequent flooding of the memorial coins increases the risk of market dilution and fraud.

When investors spread the funds in a large number of assets, liquidity becomes fragmented, and attention is transferred from legitimatic projects.

Currently, tokens with a gentle case for some actual use they get towing through hype, not a substance, which leads to value worth. Critics defendant President Donald Trump to attempt to take advantage of this trend with the launch of my meme, official Trump (Trump), days before his swear.

Token opening 600K in January, raising concerns on the market - 1
Source: Coongecko

This trend also tore the way The mat is pulled-Produced schemes in which creators give up the project after raising funds.

The indignant investors recently filed a lawsuit against Virus Star Haliei Velch (aka Hawk Tuah Girl) after her Sokol crashed. These investors accused its promoting unregistered security.

Another 2024 incident. The rper Curtis James Jackson III (Aka 50 Cen) included, who said That his website and X account are threatened to advertise a fake cryptocurrency called “Guinit”. Hackers used his large fan base to inflate the token value before collapsing to $ 0.00016.

Mema coating boom often attracts speculative traders, focused on short-term earnings, not long-term development. These speculation leads to unsustainable pumps and subsequent falls, which abolish investor confidence. And with too many monitoring coins, investors are increasingly more inclined to fall due to poorly built schemes.

BlockenCain networks also feel strain. In particular, Solana faced significant network congestion during its explosion of the moment, with growing fee for transaction and more slowly which affect the total user experience.

As Meme coins flood market, the risk of regulatory surveillance increases. Increased concerns about fraud and fraud could be triggered by governments, which would only be harmonized in accordance with legitimate projects.



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2025-02-15 19:33:00

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