Crypto Tokens Explode to 100M by 2025: Investors Beware of Oversupply

Crypto Tokens to Hit 100 Million by 2025 End: What This Means for Investors

The crypto market is set to witness an explosive growth in the number of tokens, with predictions suggesting that by 2025, the total could exceed 100 million. Currently, there are over 36 million crypto tokens, and the pace of new token creation is accelerating.

Analysts have expressed concerns about the potential oversupply of tokens, which could lead to shorter and less frequent altcoin seasons. Alex Kruger, a crypto analyst, pointed out the growing imbalance between token supply and demand, warning investors of the implications of this trend.

“Too many tokens. Infinite more to come. Supply of tokens is greater than demand,” Kruger explained, indicating that this oversupply could dampen the frequency and intensity of future altcoin seasons. He predicted that these seasons would be shorter and more sporadic, lasting only days or weeks at most.

Investors are advised to recalibrate their expectations and rebalance their portfolios in light of this growing number of tokens. Jesse Eckel, another crypto expert, emphasized the importance of filtering tokens based on fundamentals, as the majority of tokens today are either memecoins or low-effort projects with little long-term potential.

“I’d argue that with more tokens, the need to be able to filter tokens via fundamentals grows significantly,” Eckel said, suggesting that altseason could still occur but would focus on tokens with real value and effort.

Former Binance CEO CZ echoed these sentiments, advising investors to stick to fundamentals. “A hot market may have many ‘opportunities’ or ‘quick returns.’ But it is best to stick with fundamentals,” he said in a tweet.

As the crypto market evolves, investors are encouraged to maintain a long-term view and focus on fundamental analysis. Success in this environment may be found by partnering with projects that exhibit durability and solid foundations.