The cryptocurrency market appears healthy at first glance. Total market capitalization remains relatively stable, giving the impression that the industry is holding up well. But a deeper look reveals a very different story.

According to Michael Ippolito, founder of Blockworks, the number of tokens is growing much faster than the value they generate. His analysis, shared on X, highlights a structural issue that could reshape how the market functions.

If you remove Bitcoin and Ethereum from the equation, the broader crypto market looks far weaker. In fact, it has largely returned to levels seen several years ago.

This reveals a key dynamic. Market capitalization is not just about price, it also depends on supply. And right now, supply is…