In the cryptocurrency circle, the most talked-about topic is undoubtedly meme coins. Even though some criticize them as pure air coins or retail investor coins, it does not affect their immense popularity and topicality. It is undeniable that meme coins are occupying an increasingly important position within the cryptocurrency ecosystem. Statistics show that the total market capitalization of meme coins has exceeded $140 billion, and the occasional myths about their benefits have attracted more and more non-cryptocurrency enthusiasts to buy meme coins.
Not long ago, with Bitcoin first breaking the $100,000 barrier, meme coins also surged.
Since Trump was elected president of the United States, the entire cryptocurrency market has been stimulated, with the highly regarded Dogecoin's price at one point soaring to $0.47, a rise of over 400% compared to the beginning of this year.
The cryptocurrency sector represented by Dogecoin and Shiba Inu Coin (SHIB) accounted for 3.16% of the total market capitalization of all cryptocurrencies on December 1, up from 1.3% at the beginning of the year. Statistics show that from January 1 to December 1, the total market capitalization of meme coins as an industry grew by 330%. During the same period, the trading volume of meme coins increased by over 950%, with a total market capitalization exceeding approximately $140 billion.
Moreover, while other sectors of the crypto economy have seen declines, meme coins maintained considerable trading volume in June. Analysts suggest that the increase in meme coin market share also highlights the potential for speculative bubbles to emerge more quickly. While this may amplify the intensity of bull markets, it could also shorten their duration.
This year, significant changes have occurred in the meme coin space. Dogecoin and Shiba Inu Coin dominated trading volume and market capitalization in 2021. In contrast, various newer meme coins have emerged in 2024, such as Dogwifhat (WIF), Brett (BRETT), Peanut the Squirrel (PNUT), and Popcat (POPCAT), which have become tokens breaking into or nearing the top 100 by market capitalization.
At the same time, a large number of homogenized meme coins have emerged, with most of the newly appeared meme coins themed around dogs. On the other hand, tokens themed around cats and AI chatbots have also captured a certain share of the market.
Originally political-themed meme coins also performed well during the U.S. elections in November, after which trading volume sharply dropped by 80%.
Dogecoin has its own proof-of-work blockchain, mimicking the Bitcoin network. Ethereum-based meme coins, such as Pepe (PEPE) and MAGA (TRUMP), have also gained some popularity.
Thanks to the Pump platform, Solana has become the big winner of the 2024 meme coin craze; this network accounts for 30% of the industry’s trading volume, and 15% of meme coin market capitalization is based on it.
Although blockchain still accounts for only 1% of the total market capitalization of meme coins, the trading volume of meme coins on Telegram's TON network has grown 750 times over the past six months. Analysts indicate that meme coins can enhance retail participation and revenue generation for DeFi platforms; however, a heavy reliance on meme coins within ecosystems like Solana may backfire, putting greater pressure on future development.
Summary: The cryptocurrency market does not necessarily see good projects rise; often, many good projects cannot gain traction. Therefore, the most important thing in the cryptocurrency space is consensus. With consensus, any coin can rise, so remember that in the crypto world, choice is greater than effort.
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