As a seasoned crypto investor with over a decade of experience in this wild and wacky world of digital assets, I must say that the meme culture has been nothing short of a rollercoaster ride. From my humble beginnings as a Bitcoin miner to witnessing the rise and fall (and rise again) of countless altcoins, I’ve seen it all.
Over the last decade, meme culture has significantly influenced the storyline of cryptocurrency acceptance. It’s interesting to note that as meme culture grew, so did the adoption of cryptocurrencies, with their paths running side by side.
Currently, there are more than 300 types of meme-based cryptocurrencies in circulation, and their combined market value is estimated to be approximately $41.3 billion, as reported by CoinGecko.
Even though memecoins represent a tiny fraction of the overall cryptocurrency market ($2.1 trillion), it’s interesting to note that they’ve managed to survive and thrive, facing criticism since their inception in 2013 with Dogecoin, up until now.
To begin with, let’s explore the influence of meme culture within the crypto sphere. It’s important to note that memecoins have been around for over a decade now, with Dogecoin being the original, created as a humorous take on Bitcoin. The goal was to inject some fun into the digital currency market.
Advancing to the present day, we encounter a variety of meme-based tokens: Doge, Cat, Election tokens, among others. However, it’s not just their existence that stands out, but rather the substantial growth of communities surrounding these memecoins, with notable examples like PEPE, WIF, Shiba Inu, and of course, coins associated with Elon Musk such as DOGE and LADYs.
How Big is the Meme Culture?
To understand the influence of the meme culture in crypto, the most recent example would be the growth of Solana’s ecosystem since the beginning of 2024. DeFi Llama metrics show that the total value locked (TVL) has jumped from $1.4 billion to $4.8 billion at the time of writing this piece. Even more intriguing, the number of active wallets over the past 24 hours stands at 3.2 million compared to Ethereum’s 349K.
On a regular basis, there are numerous memecoins being introduced on Solana. Many of these initiatives revolve around unique themes that might attract specific groups, such as animal lovers (dog or cat enthusiasts) or fans of elections. This meme culture and organic community interest in fun or viral humor have led to a memecoin like WIF experiencing a staggering increase of over 100,000% within just nine months.
Another interesting angle to look at the power of the memecoin culture would be their appeal to high profile figures like Elon, and the impact such individuals or KOLs have in the overall crypto ecosystem.
In reference to previous events, Elon Musk has consistently been an ardent supporter of Dogecoin, with his enthusiasm stemming from as early as the DeFi summer of 2020 and 2021. During this time, he often took to Twitter to share his thoughts on DOGE. At one point, he playfully hinted that if mankind were to reach Mars in the future, Dogecoin could potentially serve as the currency there.
As an analyst, I can’t help but notice the growing impact of endorsements from influential figures on the rise and relevance of memecoins within the broader financial landscape. When Elon Musk shares his thoughts on DOGE, for instance, it’s not just the ‘degen’ crowd that pays attention or decides to invest a bit – traditional entities are now incorporating similar tweets into their memecoin investment strategies as well. This trend underscores the increasing intersection of mainstream finance and digital assets, attracting more users and capital into our industry.
In simpler terms, this fan-driven culture has shown an impact on price fluctuations. For instance, the LADYs memecoin skyrocketed approximately 11000% in May 2023, primarily due to Elon’s tweet featuring a heartfelt “There is no meme, I love you” image, which sparked an overwhelming wave of bids towards the token.
Beyond Degens: Real-World Adoption
The world of memes is expanding its influence from humor to practical applications, such as the integration of Dogecoin as a potential method of payment. Once considered a joke when discussing its potential use in transactions, this has now become a reality with some Tesla products. This move has sparked discussions about the future possibilities of meme-based cryptocurrencies. Could this subcategory of crypto find a place in everyday transactions?
As a crypto investor, I’ve noticed an intriguing trend: When a community collectively values a memecoin, it can function as a kind of currency. It’s still early to draw definitive conclusions about its potential, but the idea is fascinating and warrants further exploration.
Now that on-chain lending is available, investors in meme coins no longer have to just hold their digital assets for speculation. Platforms like Youholder enable those who own a memecoin such as PEPE to use their assets as collateral to secure loans in USD, EUR, and CHF. The loan-to-value (LTV) ratio is as high as 90%.
Conclusion
The meme coin phenomenon sheds light on a significant truth about today’s financial landscape: amusement is increasingly outweighing traditional value considerations. Instead of confining themselves to investments based solely on fundamental values, investors are now drawn to projects that incorporate an element of entertainment. This appeal could stem from the excitement, camaraderie within communities, or simply the allure of being part of a viral trend, where jokes become shared experiences.
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2024-09-24 19:16