What makes meme coins the most profitable sector in 2024? How are coins like Pepecoin, Dogwifhat, and Brett managing to capture the market’s attention and generate such extraordinary returns? Read on.
The meme coin market is surging once again, grabbing headlines and enticing the trading community. In the last 24 hours alone, the meme coins market cap has soared to $48.34 billion, marking a 2.5% increase.
Leading this rally are coins like Pepecoin (PEPE), Dogwifhat (WIF), and Brett (BRETT), which showed impressive gains. Even the larger, more established meme coins, Dogecoin (DOGE) and Shiba Inu (SHIB), have seen notable price increases.
As of June 27, DOGE is priced at $0.1234. It has a substantial market cap of $18 billion and a 24-hour trading volume of over $480 million. SHIB follows closely with a price of $0.00001715. Its market cap stands at $10.3 billion, with a daily trading volume of nearly $191 million.
Among the newer meme coins, PEPE has surged by 5.5% in the last one week, now priced at $0.00001237. WIF and Brett have also made notable strides, with WIF priced at $2.03 after a 2% increase in the last 24-hours, and BRETT at $0.1583 following a 0.41% rise.
According to Wu blockchain, in 2024, meme coins have proven to be the most profitable sector, with an average return rate of 1,834%.
Moreover, the profitability of meme coins outshines other sectors, being 8.6 times more profitable than the second most profitable sector, RWA, and 542.5 times more profitable than the DeFi sector.
Let’s dive deeper into the developments within the meme coin market and explore what we can expect in the coming days.
Major developments driving the meme coin market
The driving force behind the current meme coin frenzy is Solana (SOL), a blockchain that has become the epicenter of this market mania.
On June 25, Solana introduced “Actions” and “Blinks,” developed in partnership with Dialect, a Solana development shop. These features enable users to transact directly on blockchains from websites and social media platforms they use daily.
Today, we connect Solana to the entire internet.Vote, Donate, Mint, Swap, Pay — use Solana, everywhere. pic.twitter.com/XjoBF0uO2a
— Solana (@solana) June 25, 2024
“Solana Actions allow users to execute on-chain transactions across various platforms, including websites, social media, and physical QR codes,” explained the Solana Foundation.
This integration simplifies the process for both developers and end-users, with popular Solana wallets like Phantom and Backpack supporting these new features.
For example, a meme coin reference in an X post could now include an “action” that lets users initiate a transaction directly from the post.
Additionally, users can share these “blinks” with their followers, integrating blockchain transactions into everyday online interactions more seamlessly.
This innovation will further attract social media celebrities who have recently launched digital assets based on internet memes and pop culture figures.
For instance, the Australian rapper Iggy Azalea’s Mother token (MOTHER) reached a $70 million market cap within a month of its launch on Solana. Similarly, Dogwifhat, a standout in the 2024 meme coin craze, now boasts a market cap of over $2 billion.
Meanwhile, the BNB Chain is also aiming to capitalize on this momentum with its “Meme Heroes” initiative, which supports meme coin innovation by allocating $900,000 for liquidity pool support, raising its total commitment to $1 million.
BNB’s campaign seeks to enhance liquidity and foster a stable trading environment, encouraging developers and meme projects to apply for support.
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What to expect next?
The hype around meme coins is reaching a fever pitch on social media. Platforms like X (formerly Twitter), Reddit, and Discord are buzzing with price predictions and discussions about the next big meme coin.
For instance, the Dogwifhat price prediction indicates a 222.11% rise, reaching $6.64 by July 26, according to Coincodex. Similarly, the Pepe Coin price prediction suggests a 229.42% surge, hitting $0.00004164 by the same date.
The excitement around these coins is spreading a sense of fear of missing out (FOMO) among traders. Posts on social media tout the potential of such coins, claiming they’re on the verge of flipping.
While the excitement is palpable, it’s crucial for you to exercise caution. The current sentiment around meme coins is positive, but it’s important to remember that trading meme coins is similar to gambling.
The history of meme coins is littered with instances of sharp price declines and scams. Rug pulls, where developers abandon a project and abscond with investors’ funds, are unfortunately common in the meme coin space.
Take, for example, the infamous Squid Game token, which saw its price skyrocket before the developers pulled the rug, leaving investors with worthless tokens.
Similarly, many meme coins have experienced dramatic crashes after initial hype, resulting in colossal financial losses for those who bought in at the peak.
Social media can amplify the hype around these coins, making it easy for inexperienced traders to get caught up in the frenzy. Influencers and anonymous accounts often promote meme coins without disclosing their own investments, leading to artificially inflated prices.
The volatility of meme coins means that while some traders may see substantial gains, others can lose everything just as quickly.
For those considering investing in meme coins, it’s essential to do thorough research and understand the risks. Diversifying investments and only putting in money you can afford to lose are prudent strategies.
Always remember, fortunes can change in an instant, and it’s crucial to stay informed and cautious. Never invest more than you can afford to lose.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
