Memecoins are “one of the most powerful narratives” in the crypto market – CEO

Remember Doge? The Shiba Inu puppy that became a digital currency sensation in 2013? At the time, it was a playful critique of the seriousness of the crypto world. A decade later, memecoins, tokens inspired by internet jokes, are a crazy force in the crypto-economy, bringing massive numbers of people together. market capitalization of nearly $60 billion, according to Mike Novogratz, CEO of Galaxy Digital.

This growth is attributed to the increasing popularity of Internet memes and their ability to tap into the humor and creativity of the online community. The figure above represents a substantial amount, especially when compared to the market capitalizations of traditional companies. cryptocurrencies like Bitcoin and Ethereum. Indeed, nemecoins, as Novogratz would say, are “one of the most powerful narratives” in the crypto market right now.

From Funny to Fortune: Investing in the LOL Factor

“My son-in-law made a big deal,” Novogratz said recently, noting the big-profit potential of these mischievous pups. But how can you value a digital currency based on a meme? Novogratz suggests it’s all about the “laughter factor.” He pointed to dogwifhat (WIF), a Solana-based coin inspired by a misspelling of “dog” that has reached a market cap of $3 billion.

See more

Evolving Ecosystem: Memecoins Get Serious

This investment strategy may sound like gambling in a casino, but there is a growing trend for memecoins to evolve beyond LOLz. Take Shiba Inu (SHIB) for example. Initially a parody of Dogecoin, SHIB has evolved into a project with real-world applications. It now has its own payment system, a decentralized name service (think crypto domain names!), and even a layer 2 scaling solution called Shibarium.

DOGE market cap currently at $20.6 billion. Chart: TradingView.com

This evolution towards utility is not unique to SHIB. Floki Inu (FLOKI) launched TokenFi last year, a platform aimed at grabbing a share of the tokenization market (think representing real-world assets like property on the blockchain). This trend suggests that meme coins could be here to stay, potentially becoming more than just a flash in the pan.

Caution

If Novogratz is optimistic, others remain skeptical. Meme coins are known for wild price fluctuations, making them a risky investment. Their long-term viability based solely on utility remains questionable. Some argue that meme coins are a distraction, drawing attention away from crypto’s true potential: fostering innovation and decentralization.

Featured image from Coins.ph, chart from TradingView

Fuente