The crypto market is set to see explosive growth in the number of tokens, with predictions suggesting that by 2025, the number could exceed 100 million.
Currently, there are more than 36 million crypto tokens, and the speed of new token creation is accelerating.
Analysts: Oversupply of tokens may lead to shorter altcoin seasons
in mail On X, crypto analyst Connor highlighted this rapid increase. He noted that we are on track to hit 100 million tokens by the end of 2025.
There are 36.4 million crypto tokens today. We are moving to 100 million tokens by the end of 2025. To put it in perspective, the 2017-2018 ALT Season had less than 3,000 tokens, and the 2013-2014 ALT Season had less than 500 tokens,” Connor noted.
However, this increase in symbolic numbers has raised concerns as well. Analyst Alex Krueger Comment He stressed the increased supply, noting that demand for tokens has not kept up.
“So many tokens. Endless more to come. The supply of tokens is greater than the demand,” Krueger explained.
This, according to Kruger, will likely lead to shorter and less frequent “Altcoin seasons” as many tokens see rapid growth. Altcoin seasons are basically periods when Altcoins outperform Bitcoin. Kruger stated that Altcoin seasons will still occur but they will be short, lasting only days or weeks at most.
Krueger advised investors to adjust their expectations and rebalance their portfolios. The increasing number of tokens means that finding the right coins to invest in is becoming more difficult.
As Kruger puts it, picking successful coins in this market is now as difficult as picking winning stocks, especially considering that many stocks have underperformed against benchmarks like the S&P 500 or NASDAQ 100.
The large supply of tokens, with so much value or utility, has left many investors with a feeling of distress, even though the overall market is up.
Jesse Eckel, another crypto expert, He responded To Kroger. He emphasized that the majority of tokens today are either memecoins or low-effort projects with little long-term potential. Only a small portion of these tokens have solid fundamentals or capable teams behind them.
“I would argue that with more tokens, the need to be able to filter tokens across fundamentals grows exponentially. Which in turn will cause capital to flow toward those that stand out from the rest. AKA it’s still getting altseason, but it’s focused on Those who pass a certain threshold of minimal effort.”
Eckel argued that as more tokens flood the market, the need for liquidation becomes more important. He suggested that an Altseason could still happen, but it would focus on tokens with real value and effort.
“Therefore, it does not prevent more tokens from occurring. It simply raises the bar for tokens that are worthy of capital and attention during this season.”
Former Binance CEO CZ echoed these sentiments, advising investors to stick to fundamentals.
“A hot market may have many ‘opportunities’ or ‘quick returns,'” Cheek said in a statement tweet.
While the market may offer many opportunities in the short term, analysts suggest taking a long-term view and focusing on solid projects.
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