The cryptocurrency market witnessed an unprecedented surge in new token issuance in January, raising concerns among analysts about the potential strain on investor liquidity. According to data from GeckoTerminal, shared by CoinGecko co-founder and COO Bobby Ong, over 600,000 new cryptocurrencies were launched in the month—a staggering 12-fold increase compared to January 2024.
Unprecedented Growth in Token Creation
Bobby Ong highlighted the dramatic rise in token issuance, noting that between 2022 and 2023, roughly 50,000 new tokens were minted each month. By Q4 2024, this figure had climbed to 400,000 tokens per month, culminating in a record-breaking 600,000 new tokens in January 2025.
Platforms like Pump.Fun, which simplify token creation, have played a significant role in this increase. The ease of launching new tokens has contributed to a rapid expansion in the crypto ecosystem, but it has also led to concerns about liquidity and market stability.
Liquidity Concerns Amid Token Surge
The surge in token issuance reflects what some analysts describe as the “natural exuberance of a bullish crypto market.” Gabriel Halm, a research analyst at IntoTheBlock, explained that the sheer diversity of new tokens is stretching liquidity thin across the market.
“As a result, today’s diverse array of tokens spreads liquidity and investor attention thinly, leading to more disjointed price action,” Halm told Cointelegraph.
Impact on Established Altcoins
The thin liquidity in the market has also affected established altcoins, many of which are struggling to regain their 2021 highs. Analysts predict that the rapid expansion of new tokens may delay a full-fledged altcoin season, as investor capital is increasingly dispersed across a wider array of assets.
While the bullish sentiment driving this surge is evident, the sustainability of such explosive token growth remains in question. With liquidity spread thinner than ever, the crypto market may face increased volatility as traders and investors navigate this evolving landscape.
