Solana’s memecoin mania: What’s beyond the ‘hype’ and is there ‘impact’?

Bitcoin maximalist claim memes are scams and have no “impact.”
Exec at Pantera Capital fund disagrees, citing the impact of memes on Solana.

The debate about the usefulness and influence of memecoins is still ongoing, and it’s been a strong start to the year. In the first quarter alone, these meme coins surpassed the market significantly. The meme sector experienced a remarkable surge of 1300%, which is over four times greater than the second-best performing category (RWA).

Bitcoin Maxi and investor Fred Krueger have expressed skepticism towards the significance of memecoins, dismissing their proposed value or influence on blockchain networks. In particular, he criticized recently popularized memes displayed on outdoor advertisements.

Each time a billboard displays the term “crypto,” be prepared for a scam to follow. I’ve noticed similar warning signs emerging for the upcoming generation of meme coins.

Additionally, Krueger poured cold water on memecoin’s “impact”;

“The term ‘impact’ sets me off. Every time I encounter it, my pattern recognition system automatically finishes processing, and I can’t help but think, ‘Impact is nothing but a meaningless buzzword.'”

Impact of memes on Solana

Instead, some cryptocurrency influencers have emphasized that the Solana (SOL) network gained significantly during the first quarter due to the meme craze explosion.

Last month, Arthur Hayes, the founder of BitMEX exchange, pointed out the significant influence they could have.

“The chains that can support meme culture are going to be the chains that have value.”

Paul Veradittakit, the Managing Partner at Pantera Capital which specializes in cryptocurrencies, discussed how memes have influenced the performance of the Solana network.

Veradittakit observed that Solana came to life and discarded the lingering effects of FTX following the distribution of Bonk (BONK).

A memcoin dropped from the air brought a surge of interest to Solana, quickly being adopted by over 100 DeFi projects and applications. This led to a significant increase in platform activity once again.

The executive further mentioned that both Avalanche (AVAX) and the latest Ethereum Layer 2 solution, Blast, aim to utilize meme coins to boost engagement.

Veradittakit expounded that,

“It would be beneficial if more networks and social media platforms considered using memecoins to boost engagement.”

Based on data from CoinGecko, the meme category accounted for approximately 2.4% (or $63 billion) of the overall cryptocurrency market, valued at around $2.62 trillion at the point of this text’s creation.

The impact and buzz generated by attention-grabbing memes surrounding cryptocurrency chains can be challenging to dismiss, regardless of whether some find it distasteful or disagreeing Bitcoin proponents like Krueger are involved.

Despite this, some memes may turn out to be scams, and there have been instances of “rug pulls” on the Solana network during this period. However, the world of memes is not just a fleeting trend; other blockchains are also trying to capitalize on it.

2024-04-12 16:39

Impact of memes on Solana

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