Too many crypto issuance may bring Liquidity fear.

[Bobcrypto]

There are great concerns on the number of cryptocurrency issuance on January 2025 that analyst predicted to have negative consequences on the market. I think that with the growing numbers of new start up projects, especially memecoins, it becomes doubtful if Liquidity could spread further to trigger a bullish trends for altcoins.
With over 600k new token launched so far on the crypto economy, do you think that there could be liquidity shortage in near future?

Read here: https://cointelegraph.com/news/crypto-token-issuance-600k-liquidity-risk

[bitterguy28]

With over 600k new token launched so far on the crypto economy, do you think that there could be liquidity shortage in near future?

indeed that the amount of cryptocurrencies being launched now could affect the liquidity in the overall market since the attention and interest of investors would be so divided however i do not think we would feel the consequences too deeply simply because i think among these new cryptocurrencies being launched not all of them are being used regularly or being bought, sold or traded usually there is just only a few coins that have the most liquidity due to higher trading interest compared to the rest

[TomPluz]

Wow, that a 1,200% increase in new coins/tokens introduced just in January of this year maybe they are taking advantage of the jump in the interest of cryptocurrency brought on by the coming in of Trump to Washington in the same month. With such a huge number of new projects most especially memecoins, I am wondering if the market can easily assimilate them...but I know what will happen: most of these new project will fail to get some tractions and will just fade away leaving most of their investors and supports with nothing. In fact, I can still sense that even in February an avalanche of new projects are still ongoing and maybe the whole 2025 will be an oasis for new projects but not just for successful ones but also those that are just forgotten on the road. This is one side of the coin that we rarely talks on...and I am sensing that MORE will not necessarily better here.

[Faisal2202]

There are great concerns on the number of cryptocurrency issuance on January 2025 that analyst predicted to have negative consequences on the market. I think that with the growing numbers of new start up projects, especially memecoins, it becomes doubtful if Liquidity could spread further to trigger a bullish trends for altcoins.
With over 600k new token launched so far on the crypto economy, do you think that there could be liquidity shortage in near future?

You might heard of stable act in which the number of stable currency issuers will decrease because some of them might not comply with this act and they won't be able to do business in America but in other countries yes they can but this will shorten the market and complied ones will be used leave a big gap for liquidity means no shortage of liquidity.

Same way, when rules and regulations will be tight the number of tokens getting investments will be reduced and money will flow into the complied ones or the ones have good potential in sight of investors.

[robelneo]

To sustain the liquidity, the number of investors should match up the liquidity, which is hard to achieve since token creation has become so easy; every developer wants to have their own token.
If the investing community is flooded by so many tokens, only tokens with usecases that will contribute to the growth of the industry will remain and get the nod of the investing community.
Its the investors that will decide the fate of every token in the market.

[electronicash]

majority of them are memecoins and although they are memecoins, people are still unaware of them being scam.

Trump has started it, I think this is where people will start hating Trump for ruining crypto instead by releasing the Trumpcoin lol all others follow because they see memecoins as  loophole. crazy how it turns out that when US president become a crypto supporter.

[Aanuoluwatofunmi]

There are great concerns on the number of cryptocurrency issuance on January 2025 that analyst predicted to have negative consequences on the market. I think that with the growing numbers of new start up projects, especially memecoins, it becomes doubtful if Liquidity could spread further to trigger a bullish trends for altcoins.
With over 600k new token launched so far on the crypto economy, do you think that there could be liquidity shortage in near future?

Read here: https://cointelegraph.com/news/crypto-token-issuance-600k-liquidity-risk

We should know about any crypto project we are going for, if we can't afford the lose in it, then we should not try to invest on them, not making enough research and choosing the wrong project is one of the ways to missed out on the first step, we should not also easily got freaked by some of the cryptocurrency influencers making promotional advertisement for a project, except we have a strong conviction in them.

[MrSpasybo]

There are great concerns on the number of cryptocurrency issuance on January 2025 that analyst predicted to have negative consequences on the market. I think that with the growing numbers of new start up projects, especially memecoins, it becomes doubtful if Liquidity could spread further to trigger a bullish trends for altcoins.

With over 600k new token launched so far on the crypto economy, do you think that there could be liquidity shortage in near future?

Most of the millions of tokens in the current market are memecoins on Solana. Tron supports memecoins, Ton supports memecoins and most recently, Bnb also supports memecoins. All ecosystems don't want to miss out on the opportunity in the hot trend, as a result, the market is flooded with worthless memecoins instead of focusing on technological advancements and the philosophy of blockchain/crypto.

I don't think we should worry about the market liquidity, currently we can all trade crypto quite easily on top CEXs with slippage not much larger than before the memecoins trend. In the future, most memecoins will be forgotten and disappear on Coinmarketcap & Coingecko, it's just temporary that they will absorb investor attention and ALTs will have difficulty receiving funds to explode.

[albon]

Currently investors attention and interest will be so divided but i don't think we will believe in these new cryptocurrency. During this time a lot of new cryptocurrency is being introduced that can affect the overall market fluid. However, the types and activities of these new projects are completely different and ineligible. So such a project is suddenly creating a weapon in the market by following a few hype, so they are not able to survive for long. A lot of investors have been affected by investing in all these new projects. So there is a very low currency that is the highest fluid due to the interest of higher business than the rest.

[yhiaali3]

I was shocked when I saw that the number of cryptocurrencies on CoinMarket exceeded a million, this is a huge number and unfortunately most of them are failed projects that are worthless at all.

One of the biggest factors that negatively affects the market and prevents the flow of liquidity to Bitcoin and cryptocurrencies with strong projects, a large portion of the liquidity goes to this garbage, especially meme coins because people love to get rich quickly, so they rush to buy these memes in the hope of getting rich, but they lose in the end.

I see that there is a strong need to regulate this market again and set stricter standards for creating coins, especially meme coins.

[LogitechMouse]

There are great concerns on the number of cryptocurrency issuance on January 2025 that analyst predicted to have negative consequences on the market. I think that with the growing numbers of new start up projects, especially memecoins, it becomes doubtful if Liquidity could spread further to trigger a bullish trends for altcoins.
With over 600k new token launched so far on the crypto economy, do you think that there could be liquidity shortage in near future?

Read here: https://cointelegraph.com/news/crypto-token-issuance-600k-liquidity-risk

It's becoming an issue already.

As we can see, altcoins aren't moving that much and who's the culprit? Meme coins. Yes, there are new money being poured in into the crypto market, but most of them are doing into meme coins and not into the top coins. As of this moment, there are millions of altcoins already, and the liquidity can't cope up with it. As for the liquidity shortage, it's happening already IMO and it's pretty much seen with the price movement of Ethereum. While Bitcoin's going up, Ethereum is doing the opposite, and the same thing happens with other altcoins. This is probably because investors are selling their assets, and re-investing it into meme coins.