New data from market intelligence platform IntoTheBlock shows that the market capitalization of memecoins has reached its highest level since 2021.
The total value of meme assets nearly tripled to $56 billion in the first quarter of 2024, Lucas Outumuro, head of research at IntoTheBlock, said in a new article.
“Demand for memecoins this quarter reached its highest level since 2021. Despite interest rates remaining high and ‘freak checks’ not being sent out, the appetite for seemingly worthless cryptocurrency assets has been very strong.
It’s unclear whether this is due to an overheated economy or simply growing financial nihilism, but memecoins have become a hot topic in cryptocurrency over the past few months.”
According to the cryptocurrency analytics firm, some of the winning meme assets are Dogecoin (DOGE), Pepe (PEPE), and Shiba Inu (SHIB). IntoTheBlock points out that DOGE posted a 100% gain in the first quarter, while SHIB posted a 2.5x gain and PEPE posted a nearly 5x gain.
However, according to IntoTheBlock, the biggest winner is dogwifhat (WIF), a memecoin based on Solana (SOL).
“Memecoin has thrived in a low-fee ecosystem, and Solana has had several days with higher trading volume than Ethereum this quarter. “More than just a dog coin, Solana’s leading meme coin, WIF boasts a rampant community behind ‘dogs in hats’ and 20x annual returns.”
Lastly, the company notes that last month’s Dencun upgrade, which lowered gas fees, shifted the meme asset’s capital circulation to Ethereum (ETH).
“More recently, the meme craze has found its way back to Ethereum, primarily based on Coinbase’s native layer-2 network. This was further facilitated by gas rates being reduced by more than tenfold following the Dencun upgrade.”
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