The cryptocurrency market has seen a decline in the creation of new digital currencies since the start of Donald Trump’s second term. As of August 7, 2025, the number of newly created cryptocurrencies stood at 47,397, a 34.5% drop from the 72,454 recorded on January 20, 2025, the day Trump was sworn in, according to data retrieved by Finbold from CoinMarketCap on August 9. Notably, the platform currently tracks 19.19 million cryptocurrencies, with a yearly high of 184,087 recorded in April and a low of 4,438 since September 2024. CoinMarketCap’s market overview also shows a total market capitalization of $3.97 trillion. The number of cryptocurrencies tracked. Source: CoinMarketCap Why newly created cryptocurrencies are declining The recent slowdown in new token creation contrasts with the post-election crypto euphoria, when Bitcoin ( BTC ) soared past $123,000 on hopes of a pro-crypto Trump administration. But that initial optimism now seems to be fading, likely contributing to the decline in new launches. Notably, the decline has been recorded despite the administration having introduced several crypto-friendly policies, including a Strategic Bitcoin Reserve and Digital Asset Stockpile built from seized assets. It also passed the GENIUS Act to regulate stablecoins and formed a digital asset task force, a clear shift from the previous administration’s tougher approach. However, several factors may be fueling the decline, including Bitcoin dominance, now near 60%, which draws capital toward Bitcoin as a safer, more stable asset. This concentration reduces the appeal of launching new tokens, especially with ongoing regulatory uncertainty. Moreover, the high failure rate of new cryptocurrencies has dampened enthusiasm. Many lack strong tech, market demand, or community support, often failing due to poor liquidity, weak marketing, or stiff competition. It’s also worth noting that while new cryptocurrencies continue to emerge, some market observers warn they could foreshadow a broader financial crisis. For instance, Bloomberg Intelligence senior commodity strategist Mike McGlone has expressed concern that the proliferation of new tokens could dilute overall market value and increase the risk of financial instability. Featured image from Shutterstock The post Daily new cryptocurrencies created drops 35% under Trump’s 2nd tenure appeared first on Finbold .
