- Memecoins are gateways for traders to experience the rest of crypto, says an executive
- Most of the memes were discounted amidst the overall market drawdown ahead of the Fed decision.
As an experienced analyst, I believe memecoins serve as a valuable entry point for traders to explore and engage with the broader crypto market. The recent surge of memecoins outperforming other categories during the 2024 market cycle is a testament to their growing importance. However, like any investment trend, memecoins come with their own unique risks and rewards.
During the 2024 cryptocurrency market cycle, memecoins have experienced more significant price increases than many other crypto categories. In the first quarter alone, this segment outperformed all others. Nevertheless, memecoins have garnered both admiration and criticism from market participants.
Lately, some famous personalities have jumped on the bandwagon of memecoins, which prompted Ethereum‘s founder, Vitalik Buterin, to express his displeasure publicly.
The CEO of Solana-based decentralized exchange Jupiter Exchange, who goes by the pseudonym Meow, referred to meme tokens as “money generated by users” in his perspective.
An executive made a comparison between memecoins and user-generated content in Web 2, positioning memecoins as the counterpart of Web 3. To be more precise:
“Meme coins may serve as an introduction to the broader world of cryptocurrencies, including infrastructure, DeFi, and other advanced applications.”
Solana – Home of memecoins
The current trend of meme coins has brought significantly more traffic to the Solana blockchain than any other, with users flocking there for meme trading activities.
Over the last five trading days, I’ve observed that Solana has surpassed Ethereum in terms of decentralized exchange (DEX) trading volumes. It’s intriguing to note that a significant portion of these DEX volumes can be attributed to meme trading pairs, according to Dexscreener’s findings.
As a researcher studying the crypto market, I’ve come across Meow’s observation that memecoins could serve as a entry point to Decentralized Finance (DeFi) and other aspects of the cryptocurrency ecosystem. Upon further investigation, I find this perspective to hold merit.
The executive acknowledged the crucial role Solana played in bringing on board the meme coin phenomenon and transforming it into other cryptocurrency ecosystems.
As a crypto investor, I can’t ignore the buzz surrounding memecoins right now, and it’s essential to acknowledge Solana’s significant role in this trend. With its impressive speed, low transaction costs, large developer community, and user-friendly apps all built on a single state machine, Solana has laid the groundwork for this phenomenon to thrive.
Memecoins bleeds as BTC dips
Alex Kruger, a cryptocurrency analyst, put forth an alternative perspective. According to him, for new memecoins to thrive, they need unique features akin to Notcoin’s mechanics – specifically, the “tap-to-earn” game that facilitates user onboarding into Web 3 technologies.
During the interim, the total meme sector experienced a decrease of more than 5% within the last 24 hours, with Bitcoin [BTC] dropping to around $67,000 prior to the Fed’s announcement.
Most of the legacy memes like Dogecoin [DOGE] were down double-digits on the weekly charts.
Furthermore, Pepe (PEPE), Shiba Inu (SHIB), and Dogewhiz (WIF) displayed price reductions and turned red on the screen.
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2024-06-12 02:15