Once dismissed as a fad, Meme coins are now emerging as serious contenders in the crypto market. In a recent post on X, an analyst boldly predicted that meme coins like Dogecoin, Shiba Inu, and Bonk are not just here to stay but are poised to command at least $100 billion in market cap in the next bull cycle top.
Will Meme Coins Explode In The Next Bull Cycle?
According to CoinMarketCap data, only three crypto projects have a market cap of at least $100 billion. Bitcoin has a market cap of $1.3 trillion at spot rates, while Ethereum is second at around $388 billion. Perched at third is USDT, the stablecoin issued by Tether Holdings, commanding a market cap of $109 billion.
However, it should be noted that USDT is, as previously mentioned, a stablecoin that can be redeemable for an equal amount in USD. Its value doesn’t fluctuate, but its growth directly reflects the growing interest in the broader financial markets.
CoinMarketCap data shows that the total market cap of the meme coin scene is over $53 billion. If meme coins were a crypto project, they would be more valuable than XRP and USDC, whose market caps are over $30 billion and $34 billion, respectively.
From the $53 billion market cap, Dogecoin—the first meme coin—is the most valuable at over $22.5 billion. Shiba Inu is second at over $15.6 billion, while the latest meme coins, including Pepe and others, mainly from Solana, dominate the top 10.
Based on the analyst’s prediction, meme coins will continue to gain prominence in the coming years. It remains to be seen whether existing meme coins will be propelled to those mega valuations or new projects will emerge to take over from Dogecoin and current tokens.
Here’s Why Pepe, Dogecoin, And Similar Tokens Will Rise
According to the analyst, what sets meme coins apart is their accessibility and ease of understanding. Unlike complex decentralized finance (DeFi) protocols like Uniswap or Aave, meme coins are straightforward and easy to grasp.
Creators of some of the most valuable meme coins, like Pepe, have explicitly stated that their creations have no utility and exist purely for entertainment purposes.
Beyond accessibility, the analyst added that meme coins are generally more liquid, making them easier to trade than non-fungible tokens (NFTs). After the plunge of 2022, the NFT trading scene collapsed, with some tokens hard to buy or trade.
Aware of meme coins’ capability, especially in reviving network activity, the Avalanche Foundation recently launched a $1 million “Memecoin Rush” program. The goal is to incentivize trading and liquidity for community-owned meme coins within the Avalanche ecosystem.
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https://ift.tt/cxn97KW April 24, 2024 at 01:30AM