Memecoins
The Memecoin frenzy in numbers: the bull run phenomenon pre-halving in 2024
Disclosure: The views and opinions expressed herein belong solely to the author and do not represent the views and opinions of crypto.news editorial.
For the second time in the history of the crypto market, memecoins are spearheading the new bull run while demonstrating unprecedented growth. Some criticize meme tokens for having “zero value” and being harmful to the industry, but others praise them for engaging communities and attracting new users to crypto. Meanwhile, the latest memecoin boom has sparked a surge in trading volume in web3 wallets, defining new leaders in the crypto storage landscape.
Regardless of what one thinks of the value of memecoins, their current influence on the crypto market is difficult to overestimate.
The new rise of dog coins
The rise of meme tokens marks the emerging bull run. At the end of March 2024, the capitalization of major coins reached $80 billion, which is close to the all-time highs seen during the previous rally in 2021. At the time of writing, the total value has corrected at nearly $55 billion.
The top memecoins by market capitalization are Dogecoin And Shiba Inu, well known from previous alternate seasons, but new leaders have also appeared. Among them are BONK, “The Dog Coin of the People” and Book of Meme (BOME), a Solana-based token that has skyrocketed 457 times since its listing on Binance on March 16, only to fall 50% later.
Another leader in the race is dog hat (WIF), also based on Solana. The token having multiplied by 22 since January, its supporters managed to raise 690,000 USDC to present the project’s mascot at the Sphere in Las Vegas.
WIF on Sphere in Las Vegas | Source: dog hat
How is the current meme rally different?
Analysts note how “bizarre” the current recovery is compared to previous market cycles. Zach Rynes, the Community Liaison at Chainlink, points out that the market skipped several steps: liquidity moved from Bitcoin directly to memecoins, bypassing several intermediate steps such as Ethereum and other large-cap coins.
The memecoin market capitalization has already approached its 2021 all-time high. But this time, it may just be the beginning of the rally…Bitcoin Halving hasn’t even happened yet, whereas market peaks usually occur within a year of the event.
Web3 Wallet Activity Spikes
We are now seeing a sharp increase in crypto wallet trading volume, which can be at least partially attributed to the memecoin frenzy. Among the top five Web3 wallets, one saw 18% growth in weekly active users, while two others saw an increase of almost 50%.
What stands out is the number of transactions: the weekly figures of two wallets exceeded those of MetaMask, one of the most used and recognized Web3 wallets in previous market cycles. Topping the list is Bitget Wallet, a solution from crypto exchange Bitget which acquired the BitKeep wallet last year and has been developing it under its own brand ever since. The wallet recently listed trading pairs with BOME and BONK, which could have contributed to the increase in trading volume.
Another graph clarifies the evolution of the web3 landscape over the past months and weeks: the percentage of transactions processed by MetaMask has increased from 100% to almost 19%, giving way to new players.
“Think twice before calling it stupid”: What experts say about memecoins
Market experts have directly opposing opinions on memecoins. Among those expressing a popular view is Franklin Templeton, a US asset management firm worth trillions of dollars. The company Remarks that meme coins have attracted many traders due to their low fees and potential for quick profits. Experts warn that tokens from Internet memes “have no inherent value or utility.” “Meme coins are harming the crypto industry” adds Ki Joung Ju, founder and CEO of blockchain analytics company CryptoQuant. He keeps on:
“It’s frustrating to see billion-dollar coins overshadow hard-working teams building legitimate products to move this industry forward. Easy money can’t drive industry-wide progress.
However, many market participants argue otherwise. It is crucial to think twice before labeling memecoins as “stupid and worthless” because they can benefit blockchain ecosystems by attracting new users and developers. said crypto entrepreneur Arthur Hayes.
Memecoins will remain a vital part of the crypto industry and potentially evolve into a new asset class. believes Maartje Bus, vice president of research at Messari. They “inadvertently” introduce newcomers to the basics of Web3, including decentralized exchanges and crypto wallets, and bring people together in the blockchain space.
The evolution of memecoins
Like many cryptographic phenomena, memecoins have the potential to evolve and become more than just a short-term money-making tool. Vitalik Buterin suggests that meme tokens can contribute positively to society, serving as tools to finance public projects.
Whatever memecoins hold in the future, they are currently transforming the market. In the current market phase, meme tokens are increasing the value of L1 chain coins such as Ethereum and Solana and reshaping the web3 wallet rankings. The next rally will show other changes that meme coins will bring to the crypto market.
Mary Pedler
Mary Pedler is a seasoned communications expert and founder of INPUT Communications Agency, with over seven years of experience in human resources and public relations. His expertise has significantly contributed to the success of more than 50 technology projects, strengthening their presence in organic media and helping to raise more than $500 million. Mary’s mastery of global media relations, tailored communications strategies and in-depth understanding of Web3, blockchain and the MENA market position her as a leader in her field. Mary is a regular speaker and moderator at industry events, and her agency in Dubai specializes in creating effective communications strategies for technology projects around the world.