Cryptocurrency Development Sees Significant Slowdown, CertiK Data Reveals

November 14, 2023

By Anjali Kochhar

In a notable shift reflecting the broader state of the cryptocurrency landscape, the creation of new digital tokens has decelerated to its slowest pace in three years, as highlighted by recent data from CertiK, a prominent smart-contract auditor. The report, based on analysis of CoinMarketCap data, reveals that during the third quarter, a mere 293 new tokens were added, marking a striking decrease from the frenetic activity witnessed during the bull market of late 2021.

Excluding meme coins, which serve no discernible purpose beyond entertainment and speculation, this figure is less than a quarter of the tokens introduced in the peak of the crypto frenzy in the fourth quarter of 2021 when an astonishing 1,261 new tokens were launched. The downturn is further emphasised by a decline from 449 new tokens in the same quarter the previous year and 366 in the second quarter of this year.

The data not only underscores a slowdown in token creation but also aligns with broader indicators of a “crypto winter.” Venture-capital funding for crypto and blockchain projects has concurrently reached its lowest point since late 2020, as highlighted in a recent report by digital-asset firm Galaxy.

Ronghui Gu, co-founder of CertiK and an assistant professor of computer science at Columbia University, offered insights into this downturn, suggesting, “It may still be a sign of crypto winter where everyone has paused developing and launching, waiting for the arrival of spring.” Gu’s metaphorical reference to “crypto winter” encapsulates a period where the industry appears to be in a state of hibernation, with developers and projects adopting a cautious approach amid market uncertainties.

As green shoots tentatively emerge in the crypto markets, the sluggish pace of new token creation prompts reflection on the current dynamics shaping blockchain development. Whether this represents a temporary lull before a resurgence or a more sustained trend remains to be seen, but the data compiled by CertiK serves as a compelling indicator of the evolving nature of the cryptocurrency ecosystem. Observers will be keenly watching for signs of a thaw in this “crypto winter” and the subsequent resurgence of innovation in the blockchain space.

About the author

Anjali Kochhar covers cryptocurrency stories in India as well as globally. Having been in the field of media and journalism for over three years now, she has developed a sharp news sense and works hard to present information that goes beyond the obvious. She is an avid reader and loves writing on a wide range of subjects.

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