11 million crypto tokens—has the market hit a tipping point?
As new coins appear daily, experts debate whether this boom helps traders or spreads money too thin
The crypto market is experiencing record congestion, with nearly 11 million tokens now tracked by CoinMarketCap.
Memecoins are fueling this surge, raising concerns about oversupply and the future of altseason. While some see this as a sign of innovation, others worry it could dilute investor capital and make it harder for altcoins to rally.
Solana’s role in the memecoin boom
One blockchain at the center of this token explosion is Solana, which has become a key hub for memecoin activity. Thanks to low fees and high-speed transactions, Solana has made it easier than ever for developers—and even casual users—to launch their own tokens.
A major factor in this growth is the rise of self-serve token creation platforms like Pump.fun, which allow anyone to launch a memecoin in minutes. Since its launch in 2024, Pump.fun alone has facilitated the creation of over 5.1 million tokens and generated $520 million in revenue, making it the most popular decentralized application (dApp) on Solana.
Alon Cohen, co-founder of Pump.fun, defended the rise of memecoins, arguing that they share similarities with other altcoins.
I highly doubt this guy is posting in good faith but I’ll respond to this anyway since there seems to be a lot of confusion
— alon (@a1lon9) February 3, 2025
first of all, pump fun launched in January 2024, not April
second, pump fun is just a product. It’s a reflection of market demand. If pump fun didn’t…
But Solana isn’t the only blockchain seeing an explosion in tokens. Ethereum and BNB Chain also host thousands of new projects, including memecoins and experimental altcoins. With minimal barriers to entry, the crypto market is filling up faster than ever.
Memecoins are driving the crypto token surge
Crypto analysts point to the memecoin frenzy as a major reason behind the surge. Often created as jokes or community-driven projects, these tokens have gained massive popularity.
Even prominent figures are taking notice. Brian Armstrong, the CEO of Coinbase, recently shared on X, “We need to rethink our listing process at Coinbase given there are ~1m tokens a week being created now, and growing. High quality problem to have, but evaluating each one by one is no longer feasible.”
We need to rethink our listing process at @coinbase given there are ~1m tokens a week being created now, and growing. High quality problem to have, but evaluating each one by one is no longer feasible. And regulators need to understand that applying for approval for each one is…
— Brian Armstrong (@brian_armstrong) January 26, 2025
Memecoins account for a significant portion of these millions of cryptocurrencies—but what makes a good token different to the rest? According to Ki Young Ju, the CEO of CryptoQuant, “A good memecoin builds a community that creates social value. Without a community or if harmful, it's a scam.”
I’d like to publicly apologize to memecoiners.
— Ki Young Ju (@ki_young_ju) January 21, 2025
I misunderstood memecoins but now see their value. A good memecoin builds a community that creates social value. Without a community or if harmful, it’s a scam.
Investing in socially beneficial communities is worthwhile. https://t.co/zooH2EflsH
Is crypto oversaturated with new tokens?
Some analysts worry that the sheer number of tokens is overwhelming investors and draining liquidity from promising projects.
According to CoinGecko, memecoins were the most popular narrative in 2024, capturing 31% of global interest and trends. Now, with millions of tokens competing for attention and capital, some experts worry that oversaturation could threaten altseason—the market phase where altcoins (non-Bitcoin cryptocurrencies) outperform BTC.
Will token oversupply kill the next altseason?
Crypto Banter, a crypto-focused channel, noted the key question on X: “Is an Altseason still possible?”
We're approaching 11 Million Cryptocurrency Tokens listed on CoinMarketCap...
— Crypto Banter (@crypto_banter) February 9, 2025
Is an Altseason still possible?
Whether altseason happens again remains to be seen, but market analyst Ali Martinez believes that the proliferation of tokens today makes it harder for it to occur. On January 25, he shared on X:
“Today, there are over 36.4 million altcoins, compared to fewer than 3,000 altcoins during the 2017-2018 alt season and even fewer than 500 altcoins in 2013-2014. With such massive supply, the market [has] changed significantly.”
Unpopular opinion: There won’t be an alt season!
— Ali (@ali_charts) January 25, 2025
Today, there are over 36.4 million altcoins, compared to fewer than 3,000 altcoins during the 2017-2018 alt season and even fewer than 500 altcoins in 2013-2014.
With such massive supply, the market have changed significantly. pic.twitter.com/xLVLA2ug2t
Some traders are skeptical about the chances of another strong altseason. Linda Raschke, a full-time trader, pointed out that the sheer number of tokens could dilute both liquidity and investor focus:
“Analysts warn that the explosion in tokens could dilute investor attention & liquidity, making a true altseason harder to form. Too many coins, not enough capital?”
Meanwhile, economist Alex Krüger believes that altseason isn’t dead, but it’s shrinking. He argues that the sheer supply of tokens makes it unlikely altcoins will see extended rallies like in past cycles.
Too many tokens. Infinite more to come. Supply of tokens is greater than demand.
— Alex Krüger (@krugermacro) January 24, 2025
This illustrates why expecting an "alt season" where everything goes up for an extended period of time is misplaced. Alt season will continue to happen, but for shorter spans, from a few days to a… pic.twitter.com/8u9SB3wyrB
What’s next for the crypto market?
The rapid growth of the crypto market, driven largely by the memecoin frenzy, has sparked both excitement and concern. While platforms like Pump.fun and others make it easier than ever to launch new tokens, market oversaturation has raised questions about utility, mindshare, and long-term sustainability.
As the number of tokens continues to climb, the debate over altseason, liquidity, and investor attention will only grow. Whether this explosion of tokens represents a new phase of crypto evolution or a looming market risk remains to be seen.
