Memecoins
Memecoins, RWA, and AI Dominate Market in Q2 2024, Capturing 50% Market Share | CryptoTvplus
Memecoins gained attention in Q2 2024, capturing a significant 14.3% market share. This phenomenon, detailed in a recent report by Coingecko, reflects the growing influence of humor and pop culture on the cryptocurrency market.
With memecoins, Real World Assets (RWAs), and artificial intelligence (AI) collectively accounting for 35.7% of market activity, the digital asset landscape is rapidly evolving. This surge mirrors trends seen in Q1, where memecoins like Book of Meme (BOME), Brett, and Cat in a Dogs World (MEW) took center stage.
Coingecko report highlights the importance of meme coins at the end of Q2, with four of the top 15 crypto topics being meme-related. Specifically, meme coins accounted for 14.34% of the market share, RWA 11.30%, and AI 10.09%.
Meme coins on Solana and Base held market shares of 8.44% and 4.61% respectively. This booming trend is further fueled by the emergence of celebrity meme coins, where public figures launch their own meme-inspired digital tokens, adding a layer of glamour and attention to the market.
Some of the most high-profile launches include Caitlyn Jenner’s JENNER token, Iggy Azalea’s MOTHER token, Davido’s DAVIDO token, Rich the Kid’s RICH token, Moneybagg Yo’s SPEAK token, and Trippie Redd’s BANDO token. These celebrity-endorsed tokens have not only garnered significant media attention but have also attracted a wide range of investors, from cryptocurrency enthusiasts to fans of these celebrities.
Memecoins, characterized by their humorous or absurd names, often lack any utility or substantial value. They are primarily designed for entertainment, poking fun at the broader cryptocurrency market or financial sectors. While not intended to be serious investments, their popularity highlights a unique blend of humor, creativity, and financial speculation in the digital asset space.
On the other hand, real-world assets (RWAs) represent tangible assets in the digital space. These tokens can signify ownership of physical properties, such as real estate and artwork, or intangible assets, such as patents and copyrights. Tokenizing RWAs improves liquidity, accessibility, and efficiency in asset management, making them an attractive proposition for both traditional and digital investors.
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Solana, Base, Ethereum and TON led the chains
According to Coingecko, among the 49 blockchain networks, Solana, Ethereum, Base, and TON stood out as the most discussed platforms in the crypto world. Solana and Base, in particular, captured 22.9% of the market’s attention.
Solana has led the memecoin narrative, drawing both support and criticism. Proponents say memecoins exemplify the creative use of blockchain technology, while detractors, including Ethereum co-founder Vitalik Buterin, criticize them because they lack purpose and substance.
Solana co-founder Raj Gokal responds to these criticisms by emphasizing the importance of adapting to the rapidly changing Web3 landscape. He argues that successful projects must adapt to the way younger generations engage with blockchain technology, even if that involves seemingly frivolous applications like memecoins.
Gokal believes these trends are crucial to the future of decentralized systems, as they reflect how the next generation is exploring and shaping blockchain technology.
Ethereum has become inflationary, adding 120,000 ETH to the circulating supply
Meanwhile, Ethereum faced its own set of challenges in Q2 2024. Despite burning 107,725 ETH, the network created 228,543 ETH, resulting in a net increase of 120,818 ETH in circulation.
This made the network inflationary, due to reduced network activity and lower gas fees. The burn rate dropped by 67% compared to the previous quarter, with only seven days in Q2 where there was more ETH burning than creation, compared to 66 days in Q1. The main driver of ETH burning in Q2 was ETH transfers, which accounted for 6,838 ETH.