The cryptocurrency world is witnessing an unprecedented surge in new token launches, with over one million new tokens created since April. Ethereum and Solana networks have been at the forefront, birthing hundreds of thousands of new tokens, predominantly memecoins.

Since April 1, a staggering 372,642 new tokens have appeared on the Ethereum network, with a significant 88% launched on Coinbase’s layer-2 blockchain, Base. This surge has been driven by enthusiasts flocking to the low-cost network to create new memecoins. Coinbase director Conor Grogan highlighted that this figure is double the total number of tokens created on Ethereum from 2015 to 2023.

The total value locked (TVL) on Base has seen a dramatic increase of around 630% since the start of 2024, driven largely by the memecoin frenzy, according to L2beat.

Solana has also seen an explosion in new tokens, with 643,227 launched since April, as reported by analytics platform Step Finance. Of these, 466,914 are memecoins, based on data from a Dune Analytics dashboard tracking Solana’s memecoin platform, pump.fun.

CoinMarketCap has added 500 of the newest tokens to its platform in the past 30 days, with a majority being memecoins. Similarly, CoinGecko’s new memecoin category now lists over 600 coins with a combined market capitalization of $52.7 billion—almost half of Tether’s market cap.

Grogan’s post on X (formerly Twitter) ignited a wave of criticism from the crypto community, with many expressing concerns about the proliferation of memecoins. One critic described it as a “net negative,” highlighting the prevalence of scams and rug pulls. They argued that funds could have been better utilized in legitimate projects rather than ending up with scammers converting their gains into fiat.

Others criticized the influx of memecoins as “spam to farm sniper bots,” designed to automatically grab new tokens in hopes of quick profits. A Cointelegraph investigation in April found that one in six new Base memecoins was a scam, with over 90% showing vulnerabilities.

Despite the backlash, memecoins emerged as the most profitable crypto narrative in the first quarter of 2024, as reported by Cointelegraph. The debate over their impact on the crypto ecosystem continues, highlighting the need for greater vigilance and regulation.