Michael Ippolito has warned that the rapid increase in crypto tokens is creating an “existential” issue for the industry. While overall market capitalization appears relatively stable, the average value per token has stagnated—remaining close to 2020 levels and significantly down from 2021 highs.

This suggests that value is being spread too thin across an ever-growing number of assets. Instead of lifting the entire market, new token launches are diluting investor attention and capital, making it harder for most projects to sustain meaningful valuations over time.