There will be too many tokens — And that’s okay

In recent years, the crypto industry has experienced a true boom of new tokens and projects. It seems like every day hundreds of new coins, tokens, NFTs, and various digital assets appear. This raises many questions: aren’t there too many tokens? Won’t this lead to market oversaturation? And why this is actually good for the ecosystem?

Why the number of tokens keeps growing

The development of blockchain technology and Web3 is a massive decentralized movement, where every project tries to solve its own unique problems. Many tokens are created for specific protocols, applications, games, communities, or financial services. This results in not just one universal token, but entire ecosystems with many digital assets.

Another reason is the rise of standardization (like ERC-20, ERC-721), which makes creating tokens relatively simple and fast. Any developer or company can issue their own token, leading to explosive growth in their numbers.

Oversaturation is not a doom

At first glance, a large number of tokens can seem intimidating. There are many questionable projects, scams, and “trash” tokens. However, this is a natural stage in the evolution of any new market.

When the first internet startups appeared, there were tons of them, and not all survived. Those who built quality products with real value remained and grew. Tokenomics in crypto is no different.

Why having many tokens is a good thing

● Decentralization and diversity. More tokens and projects mean a wider variety of ideas and solutions, which leads to healthy industry development.

● Competition and innovation. New tokens motivate developers to create unique products and services, competing for users and investors.

● Opportunities for users. The diversity of tokens lets everyone choose what suits their interests — from DeFi to gaming, from art to social networks.

● New economic and community models. Tokens enable creating ecosystems with unique rules and incentives.

How not to get lost among many tokens

For investors and users, it’s important to learn to distinguish valuable projects from trash:

● Analyze the team and their experience.

● Assess the real utility of the token and project.

● Monitor the community and activity levels.

● Study tokenomics — how tokens are distributed, whether there are burning or staking mechanisms.

● Be ready for high volatility and risks.

The future with many tokens

The crypto and token market will only continue to grow and evolve. Possibly, new standards and protocols will appear to simplify interactions between tokens and increase their utility.

The main thing to understand is that a large number of tokens doesn’t mean chaos, but rather reflects the diversity and flexibility of the new digital economy.

Conclusion

There will be too many tokens — and that’s okay. It’s part of the natural growth and development of decentralized systems. Instead of fearing oversaturation, it’s better to learn to navigate this diversity and find projects with real value and potential.