Record Surge in New Token Launches Stokes Liquidity Fears

January 2025 saw an explosion of new cryptocurrency tokens, with over 600,000 new tokens created – a 12-fold increase from the same month a year prior. Analysts warn this flood of new coins stretches investor liquidity and attention thin. Many of these tokens are easily minted via platforms like Pump.fun and often lack substance, reflecting bullish market exuberance.

The dilution of capital into countless micro-cap tokens could delay an "altseason" for established altcoins, as funds are scattered across so many new projects. Industry observers note that this unprecedented creation pace may signal market froth and fragmentation.

Source: Cointelegraph – Over 600K new tokens launched in January, sparking liquidity fears