Memecoins
1,000x returns on tokens in the 2024 cycle
2024-05-07 17:02:03 ET
Meme coins are generally considered more speculative than other altcoins. In the ongoing cycle, meme coins on Solana and Base chains, top assets by market cap like Dogecoin (DOGE), Shiba Inu (SHIB) have generated massive gains for holders.
Colin Wu, a Chinese journalist, recently reported that 138 meme coins were registered on Coinmarketcap in April 2024, up from 18 in April 2023. The meme coin narrative is 4.6 times more profitable than the next best performing crypto narrative in the first quarter 2024, supporting the thesis that even Coins are traders’ secret sauce in the current cycle.
Why Meme Coins Became the Most Profitable Trade
CoinGecko’s report reviews crypto narratives in Q1 2024 and identifies meme coins as the most profitable narrative of the quarter. With over 1,300% gains, meme coins take the top spot, closely followed by real-world assets (RWA).
The meme coin frenzy on the Solana blockchain pushed the market capitalization of the top 10 meme tokens nearly 800% higher in the first quarter of 2024, the report shows. WIF, BONK, MEW, POPCAT, BOME, MYRO, SLERF, WEN, BODEN and SAMO rank among the best meme pieces on the SOL channel.
Solana meme coin market capitalization in Q1 2024
Laura Shin, host of the Unchained podcast, recently revealed the investment thesis behind meme coins this cycle, in an episode titled “Why Memecoins Were the Most Profitable Crypto Trade of 2024: Ansem and Kelxyz.” Although controversial, the asset class has surpassed $50 billion in market capitalization.
Crypto trader and analyst Ansem says memes and internet culture have value. When memes become extremely popular, they gain their value from mental space and recognition among people. Cryptocurrencies and memes are now “funding” social media trends. The distribution of meme coins is interesting in itself, as projects drop tokens to influencers and entities to gain visibility and attention from market participants.
Meme coins generally do not have inflation, staking, or other utilities. The majority of meme coins will likely circulate fully and the most important question, when assessing whether returns of 1,000% or more are likely, is what percentage of tokens the team owns.
Typically, the reach and intensity of a meme determine the attention, market share, and value it generates among market participants.
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Meme Coin Secret Sauce: 1,000x Return on Tokens in 2024 Cycle
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