The Avalanche Foundation is expanding its support for meme coins. This move could further boost the popularity of Avalanche, a low-cost, high-performance blockchain, and even support its native coin, AVAX.
Avalanche Foundation will support Meme coins
Taking to X on December 29, the foundation saying would continue its Culture Catalyst initiative to encourage meme coin activity among others, including real-world assets (RWA), non-fungible tokens (nft), and more. This campaign, they continue, aims to encourage innovation and drive the adoption of blockchains by supporting the creation of “new forms of creativity, culture and lifestyle.”
The Avalanche Foundation believes that meme coins have carved out an important niche in cryptocurrencies, representing the collective spirit and shared interests of diverse crypto communities. By recognizing and fostering this culture, the foundation hopes to develop and expand the Avalanche ecosystem, attracting new users.
As they restart Culture Catalyst, the foundation will begin by purchasing select Avalanche-based meme coins to create a collection. The selection process will be based on several critical criteria, including the number of holders, liquidity thresholds, project maturity, principles of a fair launch, and general social sentiment.
This move is an important step for the Avalanche Foundation as it signals a growing recognition of the potential of meme coins to drive innovation and growth. This is because meme coins have become increasingly popular in recent years, often attracting large communities and generating significant trading volume. According to CoinMarketCap data As of December 29, meme coins have a cumulative market capitalization of over $23 billion.
Will AVAX and COQ expand earnings in 2024?
The foundation's support for meme coins could further boost Avalanche's popularity as it will bring more attention to AVAX, a coin used to pay network fees. So far, AVAX remains in an uptrend, adding almost 400% from the October 2023 lows. Although there has been a cooldown, buyers have the upper hand. With the increasing demand caused by the implementation of more meme coins on Avalanche, AVAX prices will likely rise even further.
One of the Avalanche-based meme coins, COQ, is among the top 10 most liquid. According to DEX tools data, there are over 34,000 COQ holders at the time of writing. As of December 29, Dogecoin (DOGE) is the largest and most valuable meme coin, with over $13.2 billion in market capitalization. However, COQ's launch and subsequent stellar performance propelled it to reach a market capitalization of $114 million.
Featured image from Canva, TradingView chart
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