In December 2023, a non-profit foundation announced its intention to invest in meme coins through its Culture Catalyst Program, aiming to support creators and bolster blockchain adoption. However, on March 14, 2024, the foundation released a report highlighting five Avalanche-based meme coin projects it selected for investment to support its teams.
Avalanche Foundation picks these meme coins to invest
The meme coins selected for investment and creator support were chosen based on diverse crypto communities’ fun, spirit, uniqueness, and interests. These included the dog-themed meme token Kimbo (KIMBO), the chicken-themed Coq Inu (COQ), the gecko-themed Gecko (GEC), the technology joke (TECH), and No Chill (NOCHILL).
However, following the release of this report, it has been observed that the trading volume of these tokens, which were recently listed a few months back, experienced a significant increase despite the overall market being in the red. Additionally, following the disclosure, trading activity on the Avalanche-based exchange Trader Joe’s soared massively.
Are investors making bets in meme coins?
According to the data shared in the report, Trader Joe’s exchange trading activity skyrocketed to $64 million on March 14, 2024, up from $53 million the day before. It’s worth noting that these figures encompass trading across all tokens on the platform.
Additionally, data from DEXTools highlights a surge in trading volumes for Avalanche tokens, coinciding with a rise in the creation of new meme tokens. It seems the crypto community is eagerly anticipating the next selection by the Avalanche Foundation, hoping to ride the wave of its investments.
The Avalanche Foundation referred to these meme tokens as “community coins,” highlighting their importance as touchstones within the Web3 ecosystem. These tokens represent the creativity, diversity, and collective spirit of various crypto communities.
Despite all these factors, COQ gained massive traction during a meme coin frenzy in December. A trader who initially invested just over $450 in COQ saw their investment skyrocket to over $2.5 million within a few weeks.
Currently, the overall cryptocurrency market is struggling to gain momentum, and the crypto-meme sector is also experiencing the same, as the top meme coins including DOGE, SHIB, PEPE, WIF, and many others lost over 14% of their gains in the last 24 hours. Besides, the market trading volume of meme coins has increased by 40%, highlighting that investors as well as institutions might be buying the dip.
