The number of new tokens released in January reached a record level. However, analysts warn that this increase can dilute investor capital and make price movements irregular.
New token supply increased 12 times
According to Gecchoterminal data, the number of new crypto currencies released in January 2025 exceeded 600,000. This figure means a 12 -fold increase compared to the same period of the previous year. Bobby Ong, the founding partner and operation director of Coingecko, said that this increase was very striking compared to the levels of 50 thousand new token in 2022-2023.
In the last quarter of 2024, Ong emphasized that the number of new tokens increased to 400 thousand and that it reached 600 thousand in January 2025. In this growth, it is stated that platforms that make it easier to create token like pump.fun play a major role.
Concern of liquidity division in the market
According to Intotheblock Research Analyst Gabriel Halm, the increasing diversity of tokens makes market movements more irregular by examining investor interest and liquidity. Halm said that this situation could make it difficult for the existing Altcoins to reach the 2021 summits.
It is known that the snow obtained from Bitcoin, especially in the past bull markets, flows to Ethereum, then to Altcoins and more speculative memecoins. However, Halm said that the increasing interest of traditional financial institutions in the crypto market has changed this liquidity flow and constitutes a new capital flow order. For this reason, instead of Altcoins, it is thought that Memecoins experienced more rise.
The next five years can come to token
Coingecko’s founding partner Ong, the liquidity division in the market is the main reason for the fact that Altcoins could not realize their major rise in previous cycles. Ong:
“There are too many token, and each divides the interest of the investor and the liquidity in the market. Therefore, we cannot see the large Altcoin rally in past cycles, ”he said.
In addition, Ong said that if this growth rate continues, the total number of tokens may exceed one billion in the next five years. This may lead to a greater liquidity problem and investor interest in the crypto market.
