- One expert claims that CoinMarketCap recorded a record 138 memecoins in April.
- April saw a record 138 meme coins listed on CoinMarketCap, according to anonymous analyst Crypto Coryo.
- PEPE and WIF have been pursued by fast money.
The pause in the Bitcoin boom hasn’t stopped the meme coin season from moving forward.
According to anonymous researcher Crypto Coryo, data tracking website CoinMarketCap recorded a record 138 meme currencies in April of this year, continuing the parabolic increase from the April 2023 total of just 18.
According to Crypto Coryo on X, CoinMarketCap supposedly only lists 10% of all tokens, therefore the amount might be significantly higher.
As of the time of writing, there were 2,229 meme currencies listed on CoinMarketCap, with a combined market capitalization of over $50 billion, almost equaling the market values of American electric vehicle manufacturer Tesla (TSLA) and investment banking behemoth JPMorgan (JPM).
That’s a remarkable accomplishment given that meme currencies are sometimes attacked for being purely speculative and for having no real use case or benefit.
According to Vitalik Buterin, the creator of Ethereum, the leading smart contract blockchain and the home of several well-known meme coins, meme coins are, in theory, popular because (i) their value may increase, (ii) they feel democratic and open for participation, and (iii) they are entertaining. Buterin made this statement in a blog post.
Arthur Hayes, chief investment officer at Maelstrom and co-founder of BitMEX, a cryptocurrency exchange, advocates a better comprehension of meme currencies as a catalyst for the expansion of the blockchain ecosystem.
In an interview with Real Vision on March 30, Hayes stated, “You can poo-poo these things as stupid and worthless, but if it draws attention and more engineers to the space, it’s positive value for the chain itself.”
Since late last year, these currencies have found a new home on the programmable blockchain Solana, which is both speedier and less expensive than its rival Ethereum. The meme craze briefly caused record-breaking network traffic on Solana during the first quarter, which caused SOL’s price to rise above $200 for the first time since November 2021.
The degen activity has shifted (partially) away from Ethereum due to excessive gas fees. It has happened with Bald on Base and Bonk on Solana. However, according to Crypto Coryo, Solana is now the home of meme coins.
Because of the recent gloomy price behavior of Bitcoin, traders are pursuing the popular meme token pepe (PEPE). The token is now the ninth-best-performing cryptocurrency on CoinMarketCap’s list after rising by about 17% in only seven days.
Furthermore, data maintained by Paris-based Kaiko shows that it has the second-highest perpetual futures open interest (OI) to market capitalization ratio. The meme currency with the highest OI-to-market cap ratio is Dogifwhat (WIF).
In comparison to other altcoins, Pepe (PEPE) and Dogwifhat (WIF) have a ratio that is twice as high. According to Kaiko’s weekly email, a greater percentage means that an asset’s derivative market positioning is significant relative to its market capitalization, which means that price discovery for these tokens is focused in perpetual futures markets.
The dollar amount locked in the quantity of active or open futures contracts is referred to as notional open interest.
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.
