Despite memecoin culture, there is still no better way to create community than with NFTs, Pudgy Penguins CEO Luca Netz said at Singapore’s Solana Breakpoint conference on Friday.
“With memecoins there isn’t this profile picture in which you can easily identify on the internet, somebody that shares [your] values, and it’s almost like a chain reaction effect that I think only NFTs can create,” Netz said. “There’s also some sort of symbolism that I think they create that memecoins just naturally can’t replicate.”
The Pudgy Penguins CEO explained that one of the uniqueness that NFTs hold is a hierarchical structure distinguished by price and period of purchase that symbolizes power and status in the community. “[Holders] want to be, the word I want to say is not appropriate, but like the top dog in the room,” Netz said.
The NFT market has declined considerably compared to its peak in early 2022, which saw $17 billion in monthly sales volume. According to CryptoSlam data, the market’s volume in the last 30 days amounted to $347 million.
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While NFTs were experiencing a downturn, memecoins rose as the leading cultural and community force in web3. On the back of easy-to-use token generators, Solana’s memecoin market cap currently stands at $7 billion, with $1.82 billion traded in the past 24 hours, CoinGecko data showed.
Netz acknowledged the ongoing discourse around the NFT market decline and metrics that point to such conclusions. “Why I think NFTs are seeing a bad time at the current moment is, I think the successful NFTs are too illiquid for whales and priced out of retail,” Netz said.
Still, the Pudgy Penguins CEO said, crypto is cyclical, and NFTs will be even bigger and better in the next round with the infrastructure that’s been set in place since the last cycle.
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