Memecoins Outperform the Entire Crypto Market
Memecoins have come to the forefront of the entire cryptocurrency market, showing significant growth.
Surprisingly, Bitcoin's halving has not affected the main cryptocurrency, but rather the memecoin sector, which is now seeing a rapid rise in asset prices. The total market capitalization of memecoins is now estimated at $54 billion, and the total trading volume was $5.6 billion overnight.
The leader of growth in the memecoin sector is ERC20, which added 6,256% over the day, reaching $0.03389. Solama follows, having added 47% to its price, reaching $0.0396. Popcat was up 40% at $0.2856. The First YouTube Cat rose 35% to reach $0.288. The Coinye West memecoin inspired by rapper Kanye West rose 32%, rounding out the top five memecoins in the last 24 hours.
Popular memecoins such as Dogecoin, WIF and Pepe, on the other hand, have fallen in value over the past 24 hours.
Interestingly, experts believe that the recent rise in memecoin prices is a prequel to a strong bullish trend in the entire cryptocurrency market. They emphasize that the growth of memecoins reflects investors' increased appetite for risk. Such a trend leads to capital being attracted to the assets, which points to higher prices.
Memecoins found a new wave of popularity at the beginning of the year. The Solana network became the preferred platform for launching new projects in the sector. Interestingly, with the dramatically increased number of memecoin launches on Solana, cases of rug pull have also increased.
Only 1 month has passed and 12 of the Solana presale meme coins have been completely abandoned after raising >180,650 SOL ($26.7M).
— ZachXBT (@zachxbt) April 21, 2024
Would avoid any future projects launched by these founders. https://t.co/J0zFldRIa6 pic.twitter.com/K610MAEPMn
For instance, blockchain analyst ZachXBT found that no less than 12 projects have been completely abandoned by developers in the last 30 days. In total, the projects raised about $27 million dollars. Most of the memecoins plummeted in value after launch, and one token was not launched at all.
