More Than 600,000 Tokens Launched in January
17 Feb, 2025 ● Tin tức Crypto
The number of newly issued cryptocurrencies reached an all-time high in January, raising concerns among analysts about the limited liquidity available to investors in the market.
According to GeckoTerminal data shared by Bobby Ong, co-founder and chief operating officer of CoinGecko, more than 600,000 new cryptocurrencies were launched in January—representing a 12-fold increase compared to the same period in 2024.
Ong highlighted the rapid growth in a Feb. 14 X post, stating, “Back in 2022-2023, around 50k new tokens were minted every month.”
He added, “Fast forward to Q4 2024, and we’re seeing 400k new tokens/month - with January 2025 hitting a record 600k new tokens created per month!”
Ong attributed this surge to platforms like Pump.Fun, which simplify the process of creating new tokens.
Gabriel Halm, a research analyst at the crypto intelligence firm IntoTheBlock, noted that the increasing issuance of tokens reflects the “natural exuberance of a bullish crypto market.”
He explained that the vast number of newly minted tokens is causing liquidity and investor attention to be spread too thinly, resulting in more fragmented price movements.
The lack of liquidity is also affecting established altcoins, many of which have struggled to regain their 2021 highs.
Analysts suggest that the sheer volume of new cryptocurrencies could delay the arrival of an altcoin season, as capital is being dispersed across a wider range of assets.
Historically, during previous crypto bull markets, profits generated from the rise of Bitcoin would trickle down into Ethereum before eventually flowing into altcoins and speculative memecoins.
However, Halm pointed out that increasing institutional involvement is shifting how liquidity moves within the market.
He stated that the combination of a rapidly expanding number of crypto assets and the growing presence of traditional financial institutions will inevitably reshape the liquidity rotations that defined past market cycles.
Ong also highlighted liquidity fragmentation as a key factor behind the lack of strong market momentum.
In a follow-up X post, he commented, “Too many tokens, each spreading the limited attention and liquidity of traders even thinner. That’s why we don’t see the great alt pumps of previous cycles.”
He further suggested that, at the current pace, the total number of cryptocurrencies could exceed one billion within the next five years.
Sources:
https://cointelegraph.com/news/crypto-token-issuance-600k-liquidity-risk
https://x.com/bobbyong/status/1890321440844439712/photo/1
https://x.com/rektcapital/status/1861922497555280171/photo/3
