Key Takeaways
Memecoins can offer high yields, but also exhibit significant volatility and may be prone to rug pulls, where developers abandon the project after raising funds.
When choosing a memecoin, consider its social presence, supply distribution, and how it stands out from other memecoins.
We all know what memecoins areâhighly speculative currencies usually supported by enthusiastic communities. Often represented by animal images or animated characters, memecoins are purely trading instruments, unlike Ethereum and other chains with specific utilities. Despite this, they occupy a significant market share, with multiple memecoins boasting nine-figure market capitalizations. In fact, excluding Bitcoin, Ethereum, and stablecoins, the top 5 largest memecoins today hold a 22% dominance within the top cryptocurrencies.
