Internet Capital Markets Activity Plummets 80% Amid Token Creation Slowdown

Trading volume on the Believe platform has experienced a significant decline, dropping by 80%. This sharp decrease signals a substantial slowdown in Internet Capital Markets (ICM) activity. The daily creation of new
tokens has also seen a dramatic reduction, falling by 77%. This dual decline in trading volume and token creation has sparked concerns about the overall market interest and the future viability of .Data from Dune Analytics indicates that the daily trading volume of ICM tokens has been on a consistent downward trajectory since reaching a peak of $729.3 million on May 14, plummeting to $143.6 million by May 20. Similarly, the daily creation of new tokens has dropped from 4,977 on March 13 to just 1,134 by May 20. These figures underscore the rapid erosion of market activity within the ICM sector.
Despite the Believe App facilitating the launch of over 23,000 tokens, only 5.3% of these have seen active use. This suggests a troubling oversupply or lack of user engagement with newly created tokens. The trend has drawn criticism from industry analysts, who attribute the decline to an influx of "empty tokens" driven by meme coin hype. Mars DeFi emphasized that users were initially meant to believe in new capital formation but instead encountered noise, leading to a fatigue point with empty tokens. This situation serves as a wake-up call for the ICM sector.
DeFi highlighted that the original intention of ICMs—to promote valuable, product-driven initiatives—has been compromised by low-quality launches lacking real substance. The meme-fueled market is losing traction, and the focus needs to shift towards projects that exhibit tangible utility. The endgame for ICMs should be liquid, decentralized capital markets that support actual products and not senseless memes. This shift is crucial for the sector to recover user confidence and foster sustainable growth.
Hitesh Malviya, co-founder of DYOR, had earlier warned that the ICM trend might sustain its momentum for only four to six weeks. With the current signs of exhaustion just a week past its peak, Malviya’s caution seems to be materializing. However, not all developments indicate a sustained downturn. Ben Pasternak, founder of Believe, has announced the imminent launch of the Believe API. The goal of the Believe API is to create harmony between user products and tokens, irrespective of their application. This advancement could attract more developers to the platform and potentially revive both token creation and trading volume by enhancing the functionalities available to projects.
Leaders from the Base Network are closely monitoring the trends within Internet Capital Markets. Jesse Pollak, Head of Base and Coinbase Wallet, remarked that increasing token creation and decentralized applications are pivotal in the emerging ICM ecosystem. Base is committed to bolstering the crypto ecosystem by offering necessary infrastructure and tools for both users and developers. To onboard a billion users onto the chain, many more assets will need tokenization, and Base is equipped with the infrastructure and tools to facilitate that for consumers and builders alike.
Despite positive signs, challenges persist. For the ICM sector to recover user confidence and foster sustainable growth, the focus must shift from speculative, meme-based launches to projects that exhibit tangible utility. As Internet Capital Markets navigate through this challenging landscape, the key takeaway is clear: a pivot towards substantial projects is essential. This focus will determine the future of ICMs, distinguishing them from fleeting trends and ensuring a more resilient ecosystem. Only time will tell if this shift can restore trust and user engagement within the market.

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