Creators issued nearly half a million tokens on the Solana blockchain in May, when the barrier to entry was low and the desire to create a hit memecoin was widespread.

According to data compiled by The Block Pro, in May there were 455,000 tokens created on Solana. This compares to 177,000 tokens on Ethereum Layer 2 Base and 39,000 tokens on BNB Chain. Ethereum mainnet and Layer 2 networks like Arbitrum and Optimism each have less than 20,000 tokens created.

Number of new tokens launched each month across six blockchain networks | Photo: The Block Pro.

“Solana is built as a versatile layer 1, with fast confirmation times and high performance at extremely low transaction costs,” said Austin Federa, chief strategy officer of the Solana Foundation. “The increase in the number of tokens on Solana is a result of these characteristics, which reduce the cost of testing and creating new ideas to almost zero. Creating tokens on Solana should be as easy as creating content on the internet.”

The majority of tokens on Solana are memecoins, as they have attracted the attention of the crypto community. This trend comes after several Solana-based memecoins – such as Dogwifhat, Bonk and Book of Meme – quickly rose to the top of the crypto market.

Part of the success must be attributed to Pump.fun, a website for generating tokens with just a few clicks. Making token issuance easier has fueled the creation of more tokens over the past months, with Solana seeing the issuance of 1.1 million new tokens this year.

This token creation site is the launching pad for political memecoins (also known as PoliFi) like Jeo Boden and Doland Tremp, which have found success ahead of the upcoming US election. Political memecoins exploded last week after Trump was found guilty of 34 counts of fraudulent business records.

“The memecoin craze combined with the success of Pump.Fun has made Solana the current leading blockchain for new token issuance,” said Steven Zheng, director of research at The Block Pro. “It remains to be seen whether Solana can capture the spotlight of token issuances beyond memecoin.”

Recently, famous stars like Caitlyn Jenner and Iggy Azalea have issued Solana-based tokens, taking advantage of the ease with which these tokens increase in value due to their large followings.

From BNB Chain to Base and Solana

For Solana to lead in the number of new tokens created in May, it must first surpass the Base network, which has also seen high activity in recent months. In April, Base saw 240,000 new tokens, while Solana only had 229,000.

Both networks have taken back the crown from BNB Chain, which was previously the preferred network for issuing new tokens. During 2021 and 2022, BNB Chain saw an average of 95,000 tokens created per month. However, these numbers have gradually decreased since their peak in May 2021.

In total, there have been 7 million tokens issued across the six blockchain networks since 2017. BNB Chain still leads with 3.7 million tokens, Solana follows with 1.4 million tokens, and Ethereum mainnet is behind with almost a million tokens. million tokens.

The number of newly created tokens is just one indicator used to observe crypto ecosystems. It's more a reflection of chains being cheaper and having higher processing capacity. It does not take into account the cumulative value per token. It is also a vanity metric, as most tokens will go out of circulation and soon be forgotten.

However, it shows ongoing activity on blockchain networks. With blockchain networks constantly competing to become faster and cheaper, there is no reason to think this will slow down any time soon.

Source: https://tapchibitcoin.io/455-000-token-moi-duoc-phat-hanh-tren-solana-chi-trong-thang-5-phan-lon-la-memecoin.html