ACCORDING TO THE MARKET RECENTLY, NOTCOIN WHEN LISTING HAS BEEN FLOODED IN THE FIRST BECAUSE IT IS CONSIDERED AS MEMECOIN WITHOUT VALUE IN USECASE, APPLICABILITY,...
MANY NEW PEOPLE PARTICIPATING IN THE MARKET DO NOT KNOW WHAT MEMECOIN IS? NOW I WILL UPON AN ANALYSIS OF MEMECOIN FOR EVERYONE TO HAVE A MORE Objective VIEW OF MEMECOIN TOKEN
1. WHAT IS MEMECOIN?
Memecoin is a cryptocurrency created based on popular images, videos or humorous content on the internet
These memecoins often depend on the community and are highly risky1. They are typically not created with the intention of contributing to the cryptocurrency sector, but instead, they come from a place of fun and entertainment. For example, Dogecoin is one of the famous memecoins, created from images of Shiba Inu dogs on the internet.
However, please note that the difference between âseriousâ and ânot seriousâ is not always clear, and some memecoin projects may change in nature over time1. If you are interested in notable memecoins in 2024, you can learn more about the top 6 memecoins that the community is interested in
2. Memecoin became popular for the following reasons:
Fun and Entertainment, Community and Social Networks, Risk and Curiosity
3. Investing in memecoin may carry the following 4 potential risks
- Instability
- Lack of foundation and real value
- Security and fraud risks
- Possibility of losing all capital
4. Some popular memecoins that the community is interested in in 2024:
Dogecoin (DOGE): DOGE remains one of the most popular memecoins. It created a craze in 2021 and continues to attract user interest12.
Shiba Inu (SHIB): Created based on the image of the Shiba Inu dog, SHIB has become one of the famous memecoins. It has the same potential as Doge and attracts community attention12.
PepeCoin (PEPE): Inspired by the image of Pepe the Frog, PEPE is another notable memecoin2.
5. Does Memecoin affect the cryptocurrency market?
Memecoin has had a significant influence on the cryptocurrency market. Based on data from CoinGecko, memecoins recorded the highest returns in Q1 2024. On average, memecoins gained 1,312.6% across top market cap coins. Memecoins launched in March made the top 10 list of largest memecoins by market capitalization at the end of the quarter, including Book of Meme (BOME), Brett, and Cat in a Dogs World (MEW). BRETT recorded the highest return of 7,727.6% at the end of Q3 2024, followed by Dogwifhat (WIF) with 2,721.2% growth since the beginning of the year after gaining popularity during the Solana-based memecoin craze1 .
At present, the total capitalization of memecoin is 60.93 billion USD, accounting for about 2.32% of the total cryptocurrency market capitalization. This is an increase of 176.9% compared to the previous quarter. This market capitalization surpasses many major sectors with significant capital and institutional participation, such as decentralized physical infrastructure networks (DePINs) with 29.98 billion USD, layer 2s with 32.39 billion USD, zero knowledge with 18 billion USD, and real world assets (RWAs) with 8.5 billion USD1.
The growth of memecoin comes from growing investor interest. According to data from Google, the term âmemecoinâ is searched more than ever globally. Over a five-year time frame, global interest in âmemecoinâ reached a popularity of 88 in March, just below the peak of 100 reached in the first week of November 20231. Interest in memecoin also reflected in increased trading volume, user growth, and a robust community1.
In short, memecoin has made a significant breakthrough and impact on the cryptocurrency market recently.
6. Is there any way to reduce the risk when investing in memecoin?
See more at Binance
