- January 2, 2024
- Posted by: [email protected]
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In a remarkable turn of events, the Solana blockchain network has experienced an unprecedented surge in new token creation, breaking previous records by a substantial margin. Solscan’s data reveals that within the last two weeks, an astounding 72,202 new tokens have been minted on Solana using the SPL token standard, surpassing the token creation rate of a comparable period in October by more than 71 times.
The daily statistics for new token creation on Solana have consistently quadrupled since the network’s launch in 2020. Despite the recent revival of the Solana ecosystem, marked by increased values of SOL, Solana NFTs, Solana meme coins, and even a surge in demand for the Solana smartphone, the sudden spike in token creation is not solely attributed to organic growth in network activity.
Slorg, the Sol Incinerator project lead and blockchain investigator, expressed concern about the exponential surge in token generation. Slorg uncovered a fake token for Sol Incinerator on Solana and traced its on-chain transactions. The imposter had rapidly created and disposed of dozens of new SOL coins within minutes before moving on to the next token, including PUZZ, RUN, BABY DINO, and DEGEN BOT.
Slorg’s investigation revealed that a significant portion of the approximately 7,000 tokens launched daily on Solana are churn-style tokens designed to attract attention and exploit users monitoring platforms like Birdeye’s “recent” tab. Shockingly, wallet trails exposed an individual who had launched 300 tokens in just one week.
It is crucial to note that not every hyped Solana meme coin is a short-lived rug pull. Tokens like BONK, which adhered to their roadmap and introduced features like the BonkBot automated trading bot, have gained traction. BONK, developed by a team of prominent Solana builders, enjoys robust support within the ecosystem. Similarly, Dogwifhat has maintained a steady market cap since its launch.
However, the success of a few tokens within the broader resurgence of Solana seems to have attracted numerous token deployers aiming to flood the ecosystem with fraudulent coins. Motivated by the prospect of quick profits, these individuals launch tokens with the hope of achieving astronomical gains, disregarding potential negative consequences.
He said, “A lot of people tell me, ‘This is the entire point of crypto,’ and it’s kind of demoralizing because I think we can be so much more.”
In addition to the surge in token creation, Solana’s NFTs have witnessed significantly higher trading volume, surpassing even that of Ethereum. Projects like Mad Lads and Tensorians have experienced substantial price increases, multiplying several times over in recent weeks. Notably, the collective trading volume of Solana NFTs has now surpassed that of Ethereum, traditionally leading in trading volume and hosting the most valuable projects.
