Memecoins
Mike Novogratz considers memecoins the “cornerstone” of cryptocurrencies
- Novogratz sees memecoins as a “powerful narrative” in the cryptocurrency economy.
- Based on volume and open interest rates at the time of this writing, DOGE and PEPE may recover more quickly than others.
Galaxy Digital’s Mike Novogratz joined the industry leaders who visualize memecoin as a crucial part of the crypto economy. In a recent podcast, the executive said that memecoins have become the “cornerstone” of the cryptocurrency world.
Novogratz added That,
“In today’s market, they represent one of the most powerful narratives around.”
His outlook supports most market observers, who have called the current market run-up a “memecoin supercycle.” The term was cemented after memecoins became the performing narrative in the first quarter.
The category could perform better again in the second quarter, given how quickly it recovers compared to other categories after market declines. For example, Pepper [PEPE] AND Good [BONK] driven recovery amid a recent midweek market rebound.
Memecoin: fortune and challenges
Novogratz also reiterated that memecoins could generate a fortune and mentioned it dogwifhat’s [WIF] viral growth to $3 billion in market capitalization.
For his part, Meow, pseudonym of CEO of SolanaJupiter Exchange, based on Jupiter, considered memecoins to be “user-generated money” and “brings‘ to the rest of the crypto stacks.
Solana-based DEXs (decentralized exchanges), especially Jupiter and Raydium, have dominated memecoin trading on the Solana network.
However, huge profits have also attracted scammers, with unsuspecting investors losing money in numerous memecoin-related deals in Solana.
Meow recognized the challenges and declared That,
‘I’ll start by making it safe for people to participate first. Safety and aping are not mutually exclusive.’
However, the executive did not divulge further details on how he would accomplish this.
Meanwhile, most legacy memecoins were down by double digits in weekly charts.
However, on a modified calendar between Monday and Thursday (post-FOMC), Dogemoneta [DOGE] and PEPE were doing quite well against selling pressure at the time of this writing.
Source: Memecoin performance, TradingView
DOGE and PEPE fell only 1%, but BONK, WIF and Shiba Inu fell 4%, 7.5% and 7.9% respectively.
However, a strong recovery for the meme segment may take some time as most of the market interest has focused on the Big Data narrative of artificial intelligence, according to Coinglass data.
Over the past 24 hours, the AI segment led with a volume increase of more than 80% and a 4.8% jump in Open Interest (OI) rates. The meme segment came in at #6 with a volume increase of 15% and an OI of less than 1%.
Source: Coinglass
Inside the meme segmentDOGE and PEPE recorded the highest OI and volume, indicating that more liquidity flowed.
So, despite a possible delay in retrieving memes by category, DOGE and PEPE may have a better advantage.