Solana Skyrockets with Avalanche of Token Creation

Solana Skyrockets with Avalanche of Token Creation

Author: Chad Smith | Published On: June 29, 2024

In a remarkable display of speed and efficiency, the Solana (SOL) blockchain has emerged as a powerhouse for token creation, leaving competitors like Ethereum and BNB Chain in its wake. According to data reviewed by Crypto News Flash, an astonishing 455,000 tokens were created on Solana in May, dwarfing the 177,000 tokens created on the Ethereum Layer 2 Base and the 39,000 tokens created on the BNB Chain.

Austin Federa, head of strategy at the Solana Foundation, attributed this milestone to Solana’s fast finality, high throughput, and low transaction fees, which have contributed to the mass creation of tokens on the blockchain. “Solana is built to be a general-purpose layer 1, with fast finality and high throughput with extremely low transaction fees. The rise of mass token creation on Solana is downstream of these characteristics, bringing the cost of experimentation and new idea creation to near zero. Tokens on Solana should be as easy to create as content on the internet,” Federa stated.

Memecoins Dominate the New Token Landscape

An investigation revealed that the majority of the tokens created on Solana were meme coins, a trend fueled by the successful launch and acceptance of popular meme-inspired tokens like Dogwifhat, Bonk, and Book of Meme. The convenient token creation platform, designed for creating tokens with just a few clicks, has also played a significant role in this surge. This year alone, a staggering 1.1 million new tokens have been created on Solana.

Political meme coins like Jeo Boden and Doland Trump have also gained traction, with tokens like FreeTrump ($TRUMP) surging by 330% to trade at $0.019 following the recent guilty verdict for former US President Donald Trump on 34 felony counts of falsifying business records.

Solana’s Ascendancy in Token Creation

According to Steven Zheng, director of research at The Block Pro, the memecoin mania and the success of Pump. Fun was the major driver behind Solana’s impressive token creation figures. “The memecoin mania plus the success of Pump. Fun has made Solana the current leading blockchain to launch new tokens. It is still to be seen whether Solana can capture the mindshare of token launches beyond meme coins,” Zheng stated.

Solana’s dominance in token creation is further highlighted by its recent overtaking of the Base network, which had seen high activity earlier in the year. In April, Base recorded 240,000 new tokens, while Solana saw 229,000. Both networks have taken charge of BNB Chain, which saw an average of 95,000 monthly tokens created between 2021 and 2022.

Overall Token Creation Landscape

Since 2017, a total of 7 million tokens have been launched across six blockchain networks, with BNB Chain leading the chart with 3.7 million tokens, followed by Solana with 1.4 million tokens. However, experts caution that newly created tokens are not the ultimate metric to assess a crypto ecosystem; instead, they only shows the cheaper chains with higher throughput.

At the time of this report, SOL was trading at $165 after a 0.09% decline in the last 24 hours.

Author: Chad Smith
Chad Smith is a cryptocurrency enthusiast and blockchain advocate with a knack for simplifying complex concepts. With a clear, insightful writing style, Chad's articles cater to both beginners and experienced enthusiasts alike. Beyond cryptocurrency, he stays abreast of developments in technology, finance, and social impact.

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