Quick Facts:
- Over 600,000 new tokens were launched in January 2025, a significant increase from previous months.
- Analysts express concerns that this surge may dilute investor capital and lead to fragmented market movements.
- The influx of new tokens could delay the anticipated altcoin season, as liquidity is spread across numerous assets.
- Institutional involvement is altering traditional liquidity patterns, impacting how capital flows through the crypto market.
The cryptocurrency market hit a new milestone in January 2025, with over 600,000 new tokens launched—a 12-fold increase compared to January 2024, according to data from GeckoTerminal shared by CoinGecko co-founder Bobby Ong. Ong noted the explosive growth in a February 14 post on X, stating:
“Back in 2022-2023, around 50k new tokens were minted every month.
Fast forward to Q4 2024, and we’re seeing 400k new tokens/month – with January 2025 hitting a record 600k new tokens created per month!
That’s 12x growth in just over a year.”
According to Ong, platforms like Pump.Fun, which offer simplified tools for instant token creation, have contributed significantly to this surge. Pump.Fun’s user-friendly interface has enabled retail investors to launch tokens quickly, fueling a sharp rise in low-liquidity assets.
Analysts Warn of Market Fragmentation
The explosion of new token launches in January reflects the natural excitement of a bullish crypto market, according to Gabriel Halm, research analyst at IntoTheBlock, speaking to cointelegraph. However, Halm warns that the sheer number of tokens is diluting liquidity and fragmenting investor attention, leading to disjointed price action across the market.
Halm explained that with liquidity stretched thin, many established altcoins are struggling to regain their 2021 bull market highs, even as market sentiment improves. Analysts believe this token dispersion will likely delay the next altcoin season, as capital that would typically rotate from Bitcoin and Ethereum into smaller-cap tokens is now scattered across a vast array of newly minted projects.
In past bull markets, profits from Bitcoin (BTC) rallies flowed into Ethereum (ETH) before cascading into altcoins and speculative memecoins. However, Halm notes that growing institutional participation is disrupting these traditional liquidity flows, altering how capital moves through the crypto ecosystem. This shift means that while institutional players bring deeper liquidity, they are also reshaping market patterns, leaving some retail-focused altcoins struggling to find traction.
“At this rate, we’re heading towards 1 BILLION tokens in the next 5 years,” Bobby Ong said
