No. New Jersey is often cited as the most densely populated state, but that distinction actually belongs to Rhode Island (if counting only the 50 states) or New Jersey depending on the exact metric and year.
As of the 2020 Census:
However, if considering population density among states with >1M residents, New Jersey is #1. Rhode Island's density is slightly lower but its tiny size (1,034 sq mi) makes the comparison nuanced. DC (not a state) is far denser (~11,000/sq mi). "Crowded" is subjective; NJ feels crowded due to its high density combined with large total population (9.3M) and intense suburban sprawl.