Memecoins
Galaxy CEO says Memecoins are worth over $60 billion and cannot be ignored
Mike Novogratz, CEO of Galaxy Digital, a leading company in digital asset management and various solutions such as trading, lending, advisory services and investment solutions, called memecoins the “foundation” of the cryptocurrency industry.
Meme coins are cryptocurrency tokens such as Dogecoin (DOGE), Pepe (PEPE), and Shiba Inu (SHIB) that originated from internet memes or funny concepts and gained popularity through social media trends.
In a 37-second video tweet posted to his 467.1k followers on Gamestop.
Memecoins are now a powerful force in the crypto economy
According to him, whether you like it or not, meme coins have become the foundation of the crypto economy and reported that his company estimates the total market capitalization of meme coins to be over $60 billion today. He stated,
Memecoins, whether you’re a fan or not, have become a cornerstone of the cryptocurrency economy… In today’s market, they represent one of the most powerful narratives around.
According to data from Coinmarketcap, the current market capitalization of meme coins is estimated at around $54 billion. However, the actual total is likely even higher as not all meme coins are currently listed on Coinmarketcap.
Additionally, he shared a link aa relationship dated June 3 and written by Zack Pokorny, research analyst at Galaxy, titled “The Evolution of Memes and Their Place on the Blockchain.” The growing popularity of memecoins and the importance of blockchains in this context are discussed in this report.
The report highlights that Solana’s blockchain network is set to become the leading choice for meme coins by 2024. Zack Pokorny says Solana’s cost-effective environment reduces barriers for users interested in creating and trading meme coins , and its fast transaction confirmation speed offers a user experience similar to browsing memes on the Internet.
The report also mentions that,
Averaging around 9,000 new tokens per day from August to November 2023, Solana is now averaging more than triple that at 28,000 per day. At its peak, it surpassed 100,000 new tokens per day using the 30-day moving average (670,000 outright).
Meanwhile, while not all of these tokens are memecoins, Solana’s thriving meme culture allows it to serve as representation for the creation of meme tokens at large within the cryptocurrency space.
These remarkable statistics clearly show why the number of active addresses on the Solana network has steadily increased in recent months. The newspaper is active on March 18, 2024 Solana wallets reached a record milestone, exceeding 2 million for the first time in history.
As reported by Bankless Times, numerous meme coins, including controversial celebrity cryptocurrencies such as Andrew Tate’s DAVIDO, MUMMY and DADDY, as well as political meme coins (PolitiFi). like TRUMP and BIDEN, they are mostly established on the Solana network.
While other well-known blockchains such as Ethereum, BSC, and Base are also performing well in terms of hosting memecoins, Solana is apparently leading the way in the number of these meme-based tokens.