Remarkable report from Binance: 97 percent of memecoins have been reset.

The report titled Understanding the Rise of Memecoins, published recently by cryptocurrency exchange Binance, examined the investor profiles in this area.

The report, which claims that memecoins embody the basic principles of the cryptocurrency sector, included the following statements: “It is seen that a clear priority is given to financial profit and less focus is given to technological advancement.”

The ratio between the total market value of memecoins and altcoins has almost tripled since 2022. However, this ratio is still below the peak of 12 percent recorded in 2021.

According to Binance’s report, 76.5 percent of cryptocurrency investors come from the Y generation. Generation Z, representing the 18 to 24 age group, draws attention with its relatively low share of 17.4 percent, while Generation X, between the ages of 41 and 56, is the lowest segment investing in crypto with 4.9 percent.

The report drew attention to the astronomical increases recorded by new and popular memecoins in a short time. For example, WIF reached a market value of $1 billion in 104 days. While SHIB reached this level in 279 days, it took eight years for DOGE to reach a market value of $1 billion. The Binance report reminded that 75 percent of the memecoins traded in the market were produced in the past year.

The Binance report, which examines the economic and socioeconomic factors behind the interest in memecoins, emphasized that the global money supply grew by more than 25 percent between 2020 and 2022, from $81 trillion to $102 trillion. While it was stated that the monetary expansion in question caused inflation to rise, attention was drawn to the US inflation rate, which was measured as 7 percent in 2021 and 6.5 percent in 2022. According to the report, individual investors turned to memecoins that promised higher returns due to the inflationary environment in question.

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