- Novogratz sees memecoins as a ‘powerful narrative’ in the crypto economy.
Based on volume and open interest rates as of press time, DOGE and PEPE could recover faster than the rest.
As a researcher with experience in the crypto market, I find Mike Novogratz’s perspective on memecoins as a powerful narrative in the crypto economy intriguing. Based on current market data, it appears that DOGE and PEPE could recover faster than other coins due to their high volume and open interest rates.
Mike Novogratz, an executive at Galaxy Digital, has expressed his belief in the significance of memecoins within the crypto market during a recent podcast interview. He referred to these digital assets as the “foundational pillars” or “base elements” of the cryptocurrency world.
Novogratz added that,
‘In today’s market, they’re one of the most powerful narratives out there.’
Most market experts agree with his perspective, labeling the recent market surge as the “memecoin boom cycle.” This moniker gained popularity when memecoins took the lead as the best-performing market trend during the first quarter.
The given category could outperform in the second quarter based on its history of bouncing back quickly from market downturns. For example, Pepe (PEPE) and Bonk (BONK) were among the top performers during a recent mid-week market recovery.
Memecoins: Fortune and challenges
I, too, concur with Novogratz’s belief that memecoins have the potential to yield substantial returns. In fact, he pointed towards dogecoin‘s (WIF) remarkable rise from obscurity to a market capitalization of $3 billion as evidence.
From Meow’s perspective, as the pseudonymous CEO of the Solana-based exchange, Jupiter, he regarded memecoins as a form of “homegrown currency” and a “entry point” into the broader world of cryptocurrencies.
Decentralized exchanges (DEXs) built on the Solana network, such as Jupiter and Raydium, have emerged as prominent players in the memcoin trading scene on this platform.
Yet, significant gains have brought in swindlers, resulting in financial losses for naive investors through various rug pulls involving memecoins on the Solana platform.
Meow acknowledged the challenges and stated that,
As a researcher, I will prioritize ensuring safety before proceeding with any participation or imitation activities. Safety and progress are not opposing concepts.
However, the executive didn’t divulge more details on how he would accomplish that.
In the meantime, most of the legacy memecoins were down double digits on the weekly charts.
On a revised schedule from Monday to Thursday following the FOMC meeting, Dogecoin [DOGE] and PEPE displayed resilience against selling pressure as of this moment.
In simpler terms, while DOGE and PEPE experienced only a 1% decrease, BONK, WIF, and Shiba Inu suffered greater losses with decreases of 4%, 7.5%, and 7.9% respectively.
Although the meme segment may experience a significant bounce back at some point, it could take time given that the majority of market attention has been focused on the AI and Big Data trend based on Coinglass data.
As a researcher studying market trends, I’ve observed some significant shifts in various market segments over the past 24 hours. Notably, the Artificial Intelligence (AI) segment experienced an impressive surge, accounting for over 80% of the total trading volume with a substantial 4.8% rise in Open Interest (OI) rates. On the other hand, the Meme segment ranked sixth in terms of trading volume, registering a 15% increase. However, its Open Interest remained relatively low, below 1%.
In the meme category, Doge and Pepe saw the greatest open interest and trading volume, suggesting a larger influx of funds in these assets.
As a researcher studying the dynamics of meme popularity, I’ve observed that while there might be a delay in the recovery of some memes like DOGE and PEPE due to their specific categories, they may still hold an advantage in terms of early adoption and widespread recognition among online communities.
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2024-06-13 20:08