Thousands of new tokens are flooding Solana as traders search for the next 1,000x

On Solana, a startling amount of new fungible tokens have been created this month compared to any other time in the network's history.

Solscan data shows that 72,202 new tokens using the SPL token standard have appeared on Solana in the previous two weeks alone. That is more than 71 times the quantity of coins produced on the network in October over a similar time frame. The daily statistics for the creation of new tokens on Solana are typically four times more than they have been since the platform's introduction in 2020.

Even while the Solana ecosystem has had a tremendous resurgence over the past two months, driving up demand for the Solana smartphone, SOL, Solana NFTs, and meme coins, it is unlikely that such a sharp rise in token creation can be attributed to natural increases in network activity.
The project lead of the Solana NFT tool Sol Incinerator, Slorg, a pseudonymous blockchain investigator, told Decrypt that "perhaps you can assume a doubling or tripling of [new SPL token creation] because of an uptick in general activity." "However, how do you reconcile the remaining 6,000 tokens each day?

Recently, a phony token for Sol Incinerator appeared on Solana, drawing Slorg into the dilemma. The imposter produced hundreds of new SOL coins that day, pumping and dumping each one in a matter of minutes before moving on to the next, including PUZZ, RUN, BABY DINO, and DEGEN BOT, according to Slorg and their team's analysis of on-chain transactions.

Slorg mentioned the well-known cryptocurrency trading data aggregator Birdeye when he remarked, "Of these 7,000 tokens being launched daily, a lot of them are these 30-a-day style churn type tokens to farm people watching the'recent' tab on Birdeye." Wallet trails showing that one individual released 300 tokens in a week were discovered, according to a tweet this week from Slorg.

To be clear, not all of the much anticipated Solana meme coins are longer than an hour. In addition to introducing its increasingly popular BonkBot automatic trading bot, BONK has adhered to its detailed roadmap. The coin was introduced by a group that included well-known Solana developers and has widespread ecosystem support. Since its inception last month, Dogwifhat has also maintained a consistent capitalization rate.

However, in the context of Solana's larger comeback, the success of some of those tokens seems to have drawn enough deployers eager to flood the network with fake coins since they are lured by the possibility of earning even a few dollars every gambit.

"Many people tell me that this is the whole purpose of cryptocurrency," Slorg remarked. And that depresses me a little bit because I think we are capable of so much more.