This article discusses the recent surge in popularity of memecoins and their impact on the crypto market. According to data from DappRadar, transaction volume on memecoin wallets has surpassed that of MetaMask, making up nearly 19% of all transactions. The author notes that this shift could be attributed to the listing of trading pairs with popular memecoins like BOME and BONK by web3 wallets like Bitget Wallet.
In the cryptocurrency sector for the second time, meme coins are leading the charge during a bull market with remarkable expansion. Critics dismiss meme tokens as worthless and detrimental to the industry, while supporters laud their ability to foster communities and draw fresh users into crypto. The recent surge in popularity of meme coins has triggered a significant increase in transaction activity in web3 wallets, thereby establishing new frontrunners in the competitive crypto storage landscape.
Despite any opinions on the worth of memecoins, their impact on the current crypto market is significantly notable.
The new rise of dog coins
The surge of meme tokens signifies an impending bull market. By the end of March 2024, the market capitalization of leading meme coins had ballooned to around $80 billion, nearing previous peak levels witnessed during the 2021 rally. At present, however, their combined value hovers close to $55 billion following a correction.
As a crypto investor, I’ve noticed that Dogecoin and Shiba Inu continue to dominate the memecoin market cap scene, having made a name for themselves during previous alt seasons. However, new meme coin leaders have emerged, and two of them are BONK and Book of Meme (BOME). I, myself, have invested in BONK, which markets itself as “The Dog Coin of the People.” BOME, on the other hand, is a Solana-based token that saw an incredible surge of 457x since its listing on Binance on March 16. Sadly, this newcomer experienced a significant correction, with prices dropping by around 50% afterwards.
Another leader in the race is Dogwifhat (WIF), also based on Solana. As the token has gained 22X since January, its supporters managed to raise 690,000 USDC to showcase the project’s mascot at Sphere in Las Vegas.
How the current meme rally is different
Experts observe an unusual trait in the ongoing market rally, with some analysts finding it striking compared to past cycles. Notably, Zach Rynes, a representative of Chainlink, brings attention to this peculiarity. He explains that during this cycle, the liquidity has transitioned from Bitcoin into memecoins, bypassing stages like Ethereum and other well-established high-capitalization coins.
Memecoin market capitalization has nearly reached the peak levels of 2021. This could be just the start of a rally as the Bitcoin halving has not occurred yet, and historical data suggests that market peaks for memecoins usually occur within a year after this event.
Web3 wallet activity spikes
Currently, there’s a significant surge in crypto wallet transaction activity, with a notable contribution coming from the memecoin craze. Among the leading web3 wallets, one observed a 18% rise in weekly active users, while two others experienced nearly a 50% user increase.
The transaction count is particularly noteworthy. The weekly figures for two wallets, Bitget Wallet and an unspecified other wallet, have exceeded those of MetaMask – a well-known web3 wallet that has garnered attention during prior market cycles. Heading the pack is Bitget Wallet, which is operated by crypto exchange Bitget following their acquisition of BitKeep last year. Since then, Bitget has been developing the wallet under its own brand. A recent addition of trading pairs with BOME and BONK could be a factor in the significant increase in transaction volume for this wallet.
As an analyst, I’ve examined recent shifts in the web3 landscape and discovered some intriguing developments. MetaMask, which previously handled 100% of the transactions, now processes only around 19%. This significant decrease opens up opportunities for emerging players to make their mark in the space.
“Think twice before calling it stupid”: what experts say about memecoins
Market experts hold significantly differing perspectives regarding memecoins. One prominent viewpoint is expressed by Franklin Templeton, a major American asset management firm, which values these coins due to their low transaction fees and potential for swift profits, attracting numerous traders. However, other experts caution that meme coins lack inherent value or functionality. Ki Joung Ju, the founder and CEO of CryptoQuant, a blockchain analytics firm, shares this viewpoint and asserts that meme coins pose a detrimental impact on the crypto industry.
“It’s disheartening to witness meme coins with multibillion-dollar market values eclipse the efforts of dedicated teams crafting genuine innovations for this sector. Progress cannot be solely fueled by quick profits.”
Yet, some market players strongly disagree with this perspective. It’s important to exercise caution before dismissing memecoins as insignificant or worthless. Crypto entrepreneur Arthur Hayes makes a compelling case for their value, explaining that they can contribute positively to the blockchain community by bringing in fresh users and developers.
As a seasoned analyst at Messari, I strongly believe that memecoins will continue to play a significant role within the cryptocurrency sector. These unconventional digital assets may even develop into a new asset class in the future. Unintentionally, they serve as gateways for novices, introducing them to fundamental web3 concepts such as decentralized exchanges and crypto wallets. Furthermore, memecoins help foster a sense of community among individuals engaging with blockchain technology.
The evolution of memecoins
As a researcher exploring the dynamic world of cryptocurrencies, I’ve come across the intriguing phenomenon of memecoins. Similar to other crypto assets, memecoins hold the capacity to metamorphose and offer more than just fleeting profit opportunities. Intriguingly, Vitalik Buterin, a renowned figure in this field, posits that these tokens can significantly contribute to society. They could potentially function as funding mechanisms for public projects.
As an analyst, I’ve observed that meme coins are currently making a significant impact on the cryptocurrency market. In this present market phase, these tokens are boosting the value of layer 1 chain coins like Ethereum and Solana, while also redefining the hierarchy of web3 wallets. The upcoming rally is expected to bring about more transformative changes as meme coins continue to shape the crypto landscape.
Mary Pedler, an accomplished communication specialist and founder of INPUT Communications Agency, boasts a rich background of over 7 years in GR and PR. Her proven expertise has been instrumental in the successful execution of more than 50 tech initiatives, amplifying their media coverage organically and securing over half a billion dollars in funding. With her mastery of global media relations, customized communication plans, and extensive knowledge of web3, blockchain, and the MENA market, Mary emerges as a trailblazer within her industry. A frequent presenter and moderator at industry conferences, Mary’s Dubai-based agency excels in crafting impactful communication strategies for tech projects worldwide.
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2024-04-27 13:24