Emre Yumlu 
New cryptocurrency issuance increased by 12 times, with analysts warning of diluted investor capital and “disjointed” price action.
Cryptocurrency issuance reached an all-time high in January, raising concerns among analysts about the lack of investor liquidity in the market.
According to GeckoTerminal data, over 600,000 new cryptocurrencies were launched in January, marking a 12-fold increase compared to the same period in 2024. The data was shared by Bobby Ong, the co-founder and CEO of CoinGecko.
In an X post on February 14, Ong stated,
“Back in 2022-2023, around 50,000 new tokens were minted every month”, “By Q4 2024, we were seeing 400,000 new tokens/month – and in January 2025, a record 600,000 new tokens were created per month!”
Increasing Token Issuance and Liquidity Issues
Platforms like Pump.Fun, which simplify token creation, have contributed to this surge, Ong noted, adding that the growing token issuance also reflects the “natural exuberance of a bullish crypto market.”
Gabriel Halm, a research analyst at the crypto intelligence platform IntoTheBlock, stated, “As a result, today’s diverse array of tokens spreads liquidity and investor attention thinly, leading to more disjointed price action.”
The thin liquidity in crypto markets also reflects the lack of momentum for more established altcoins to return to their 2021 highs. However, analysts predict that the increasing number of cryptocurrencies and token dispersion will delay the altcoin season.
During previous crypto bull markets, profits from Bitcoin’s rally would flow into Ether, then altcoins, and more speculative memecoins.
However, the growing institutional participation is changing liquidity flow dynamics in the market, according to Halm:
“Alongside the near-exponential growth of new crypto assets, the emergence of traditional finance institutions as actors in the space will inevitably alter the liquidity rotations seen in previous cycles, reshaping how capital flows in the crypto space.”
CoinGecko’s Ong also pointed to liquidity fragmentation as the issue causing the lack of momentum in the market.,
“There are too many tokens, each spreading traders’ limited attention and liquidity even thinner. That’s why we don’t see the big altcoin pumps from previous cycles,” Ong added in a subsequent X post.
At the current pace, the crypto industry could surpass one billion tokens within the next five years, Ong also stated.
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