Once dismissed as a fad, Meme coins are now emerging as serious contenders in the cryptocurrency market. In a recent post about x, one analyst boldly twitter.com/trading_vapor/status/1782672802794926295″ target=”_blank” rel=”noopener nofollow”>foretold that meme coins like Dogecoin, Shiba Inu, and Bonk are not only here to stay, but are poised to reach at least $100 billion in market capitalization at the next peak of the bull cycle.
Will Meme Coins Explode in the Next Bull Cycle?
According to data from CoinMarketCap, only three crypto projects have a market capitalization of at least $100 billion. bitcoin has a market capitalization of $1.3 trillion at spot exchange rates, while ethereum comes in second place at around $388 billion. In third place is USDT, the stablecoin issued by Tether Holdings, with a market capitalization of $109 billion.
However, it should be noted that USDT is, as mentioned above, a stablecoin that can be redeemed for an equal amount in USD. Its value does not fluctuate, but its growth directly reflects the growing interest in financial markets in general.
CoinMarketCap Data sample that the total market capitalization of the meme coin scene exceeds $53 billion. If meme coins were a crypto project, they would be more valuable than XRP and USDC, whose market capitalizations exceed $30 billion and $34 billion, respectively.
Of the market cap of $53 billion, Dogecoin, the first meme coin, is the most valuable at over $22.5 billion. Shiba Inu takes second place with over $15.6 billion, while the latest meme coins, including Pepe and others, mainly from Solana, dominate the top 10.
According to the analyst's prediction, meme coins will continue to gain prominence in the coming years. It remains to be seen if existing meme coins will be propelled to those mega valuations or if new projects will emerge to replace Dogecoin and the current tokens.
Here's why Pepe, Dogecoin and similar tokens will rise
According to the analyst, what distinguishes meme currencies is their accessibility and ease of understanding. Unlike complex decentralized finance (DeFi) protocols like Uniswap or Aave, meme coins are simple and easy to understand.
The creators of some of the most valuable meme coins, like Pepe, have explicitly stated that their creations have no use and exist solely for entertainment purposes.
Beyond accessibility, the analyst He added that meme coins are generally more liquid, making them easier to trade than non-fungible tokens (nfts). After the 2022 crash, the nft trading scene collapsed and some tokens were difficult to purchase or exchange.
Aware of the capacity of meme coinsespecially to reactivate network activity, the Avalanche Foundation recently thrown out a $1 million “Memecoin Rush” program. The goal is to incentivize trading and liquidity of community-owned meme coins within the Avalanche ecosystem.
Featured image from Canva, TradingView chart
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