Memecoins have been the dominant narrative this year, generating significant activity among traders. Given that they have also been the best-performing sector so far this year, with an impressive return of 280%, itâs no surprise they have garnered so much interest.
Chains like #Solana and #Base have been popular routes for #memecoinđđđ trading, benefiting from increased on-chain activity and a rise in daily active addresses. As previously shown in LocademiaCripto, the number of weekly DEX traders on Solana skyrocketed from around 455,000 to 2.9 million at its peak in June, nearly a sixfold increase. Base has also outperformed several other chains in this metric, averaging over 1 million weekly DEX traders in July. While not all this growth can be attributed exclusively to memecoins, they have undoubtedly played a crucial role in boosting activity on these chains.
The token supply structures of memecoins have also contributed to their popularity. Many memecoins have all their tokens unlocked and circulating from the TGE, eliminating the selling pressure from future dilutions. Many have a market cap equal to the fully diluted valuation, indicating that holders wonât suffer additional dilution from token emissions. This structure has partly played a role in the appeal of memecoins, especially as awareness grows about the effects of significant token unlocks, even if the tokens may lack utility.
It will be interesting to observe how this popularity evolves in the coming months and whether memecoins can continue to be a dominant force in the market.
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