This month has seen a massive increase in the number of new coins added to the Solana blockchain network, well exceeding all prior records.Solscan data shows that a whopping 72,202 additional tokens have been created on Solana utilizing the SPL token standard in just the last two weeks alone.This figure exceeds by about 71 times the total tokens generated in a same time frame in October.Since the network’s introduction in 2020, the daily statistics for the generation of new tokens on Solana have continuously increased by four times.
The Solana ecosystem has had a spectacular renaissance over the last two months, which has increased the demand for the Solana smartphone, the value of SOL, Solana NFTs, and meme currencies. However, this extraordinary resurrection cannot be entirely credited to the rapid spike in token generation.Slorg, the project lead for Sol Incinerator and a blockchain investigator, expressed worries on the exponential increase in token creation.
Tracking the on-chain transactions of a fraudulent token for Sol Incinerator on Solana, Slorg made this discovery.The fraudster produced numerous SOL coins on the same day, quickly pumping and discarding each one in a matter of minutes before switching to the subsequent token, which included PUZZ, RUN, BABY DINO, and DEGEN BOT.Slorg disclosed that a significant portion of the roughly 7,000 tokens that are introduced on Solana every day are churn-style tokens, designed to draw attention and take advantage of users who keep an eye on the “recent” tab on websites like Birdeye, a well-known aggregator of cryptocurrency trading data.In less than a week, Slorg discovered wallet tracks demonstrating that a single person had independently issued 300 tokens.
It is crucial to remember that not every highly anticipated Solana meme coin is a passing fad.Certain tokens, such as BONK, have acquired popularity after introducing features like the BonkBot automated trading bot and sticking to their roadmap.BONK has strong ecosystem support and was created by a group of well-known Solana builders.In a similar vein, Dogwifhat’s market capitalization has been constant since its introduction.But the popularity of a few tokens in the larger Solana revival appears to have drawn many token deployers to oversaturate the ecosystem with fake money.
These people, who are driven by the possibility of making quick money, issue tokens in the hopes of generating enormous returns while ignoring any potential drawbacks.
“A lot of people tell me, ‘This is the entire point of crypto,’” Slorg said. “And it’s kind of demoralizing, because I think we can be so much more.”
As previously mentioned, Solana’s NFTs have seen trade volumes that are far larger than Ethereum’s.The cost of projects like Mad Lads and Tensorians has significantly increased in recent weeks, doubling multiple times over.Additionally, the total trading volume of Solana NFTs has overtaken Ethereum’s, which has historically led in trading volume and is home to the most valuable projects.