- After extraordinary runs for well-known tokens like Dogwifhat in the first quarter of this year, meme coins are still a major story in the cryptocurrency space in the second quarter.
According to blockchain analyst Crypto Koryo, CoinMarketCap listed over 138 new memecoins that were introduced last month using the ERC-20 standard.
CoinMarketCap lists a small portion of deployed tokens, despite the fact that the number increased by more than seven times since April of last year. Put otherwise, there were probably a lot more new memecoins hitting the market in the preceding 30 days.
Meme coin conjecture stimulated by sophisticated tools
Two years ago, launching a meme coin—or any cryptocurrency—was more difficult and required technological know-how that not everyone possessed. But new blockchain tools and solutions have made it possible with a few clicks, which has encouraged more entrepreneurs to enter the market.
With developers offering wrappers such as the Runes protocol on Bitcoin (BTC) and inscription types like SRC-20, DRC-20, and ASC-20 on EVM chains, new token standards have reduced the entry hurdle. New standards and improved on-chain transactions have also caused liquidity to shift away from industry leaders like Ethereum (ETH) and toward rivals like Solana (SOL).
Citing CoinMarketCap data, Crypto Koryo identified Solana as the hub for meme tokens at the moment, essentially controlling the market since last year. To find plenty of liquidity three years ago, users had to almost exclusively speculate on ETH-based projects like Dogecoin (DOGE), Floki Inu (FLOKI), and Shiba Inu (SHIB).
Fears of meme coin oversaturation
The capacity to draw in more players and funds for a wider range of meme plays has undoubtedly improved, but even with its enhanced accessibility, the new paradigm has its own set of drawbacks.
Memecoin space has becoming oversaturated because to better tools and decentralized networks. The majority of these tokens will expire, making it harder for traders to look for rewards.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
