Memecoins
1,000x token returns in 2024 cycle
05/07/2024 5:02:03 PM ET
Meme coins are generally considered more speculative than other altcoins. In the current cycle, meme coins on the Solana and Base chain, major assets by market cap such as Dogecoin (DOGE), Shiba Inu (SHIB) have produced huge 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 top crypto narrative performance in the first quarter of 2024, supporting the thesis that meme coins are traders’ secret sauce in the current cycle.
Why meme coins have emerged as the most profitable trade
CoinGecko’s report examines cryptocurrency narratives in the first quarter of 2024 and identifies meme coins as the most profitable narrative of the quarter. With gains of more than 1,300%, meme coins are in first place, followed closely by Real World Assets (RWA).
The meme coin frenzy on the Solana blockchain pushed the market capitalization of the top 10 meme tokens to increase by nearly 800% in the first quarter of 2024, the report showed. WIF, BONK, MEW, POPCAT, BOME, MYRO, SLERF, WEN, BODEN and SAMO rank among the best meme coins in the SOL chain.
Market capitalization of Solana meme coins in the first quarter of 2024
Laura Shin, host of the Unchained podcast, recently revealed the investment thesis behind this cycle’s meme coins, in an episode titled “Why Memecoins Were the Most Profitable Cryptocurrency Trade of 2024: Ansem and Kelxyz.” Despite being controversial, the asset class has surpassed $50 billion in market capitalization.
Ansem, a cryptocurrency trader and analyst, says there is value in memes and internet culture. When memes become extremely popular, they gain value from mental space and recognition among people. Cryptocurrencies and meme coins are now “funding” social media trends. The distribution of meme coins is interesting in itself, as it airdrops tokens to influencers and entities to gain visibility and attention from market participants.
Meme coins typically have no inflation, staking, or other utilities. Most meme coins will likely be in full circulation, and the most important question, when evaluating whether returns of 1,000% and above are likely, is what percentage of tokens the team owns.
Typically, the reach and intensity of a meme determines the attention, market share, and value it garners among market participants.
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Meme Coins Secret Sauce: 1,000x Returns on Tokens in the 2024 Cycle
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