Experts from the analytical company Kaiko, in a new report on the state of the digital asset sector, noted an improvement in the liquidity of meme tokens, which continues even in the face of a correction in the broader crypto market. In terms of profitability, meme tokens are among the best this year, ahead of Bitcoin and other altcoins.
Kaiko noted that the liquidity of meme tokens with a market depth of 1% has doubled since the beginning of the year and in early June reached an all-time high of $128 million, after which it adjusted slightly.
The increase in liquidity at Kaiko was partly attributed to higher prices. Many leading meme tokens such as Dogwifhat (WIF), Memecoin (MEME) or Book of Meme (BOME) have shown significant increases in liquidity, ranging from 200% to 4000%.
The company emphasized that more and more market makers are providing liquidity for these coins, although they are still considered risky due to high volatility.
In addition, the price discovery of meme tokens largely occurs in derivatives markets, making such assets subject to cascading liquidations that can exacerbate price fluctuations.
Previously, Tether CEO Paolo Ardoino criticized meme tokens, saying that they are on the opposite side of the spectrum from Bitcoin, which is a reliable decentralized cryptocurrency.
In early June, Bybit exchange analysts noted that the volume of meme tokens in the portfolios of their institutional clients had grown by 125% since the beginning of the year.
