Recent data from blockchain security firm CertiK has revealed a significant slowdown in the creation of new cryptocurrencies, with the pace now reaching its slowest in three years. According to CertiK data shared with CoinDesk, the third quarter of this year saw the fewest new token launches since the beginning of 2021. The data set, compiled using information from CoinMarketCap, excludes memecoins, which are speculative tokens without clear use cases.
The Numbers
In the third quarter of this year, only 293 new tokens were added, marking a decline from 366 in the previous quarter and 449 in the same period a year ago. These figures are in sharp contrast to the peak of the crypto bull market in the fourth quarter of 2021 when CoinMarketCap data showed that 1,261 new tokens were launched.
Trends in the Crypto Industry
These findings align with other reports highlighting the challenges faced by the crypto industry during last year’s market downturn. A report from Galaxy Digital, a digital asset management firm led by Mike Novogratz, stated that the environment for crypto venture capital funding remains “extremely challenging.” This came after five consecutive quarters of decline in funding. Galaxy Digital also mentioned that the investment amount marked the low for the current cycle, and it was the lowest amount invested on a quarterly basis since Q4 of 2020.
Commenting on the slower pace of token launches, CertiK co-founder Ronghui Gu suggested that it might signify a broader trend of cautiousness within the industry. He stated, “It may still be a sign of crypto winter where everyone has paused developing and launching, waiting for the arrival of spring.”
