What can we expect from the meme coin market after a 7.5% increase in a single day? Read on
The cryptocurrency market has been on a rollercoaster ride over the past 24 hours, recovering from heavy losses triggered by two major events: the launch of the Mt. Gox refund and the sale of its bitcoin (btc) holdings by the German government.
These incidents caused widespread panic, leading to a sharp drop in cryptocurrency prices. However, in the past 24 hours, the market capitalization of meme coins recovered and increase by almost 7.5%, according to CoinGecko.
Leading this rally are Solana (SOL)-based meme coins, which have seen an impressive rally of over 14.5%. The star of the show is Bonk (BONK), which is up nearly 12.5% and is currently trading at $0.00002641 as of July 9.
Close behind is Brett (BRETT), hosted on Coinbase’s Base blockchain, which is up nearly 7% and trading at $0.1306.
Additionally, PolitiFi meme coins, inspired by political figures and movements, have also seen significant gains. The market cap of PolitiFi meme coins has increased by almost 13.7% in the past 24 hours.
ConstitutionDAO (PEOPLE) is up 5.5% and is trading at $0.05835, while the Trump-inspired MAGA coin (TRUMP) is up 6.1% and is trading at $6.21.
Interestingly, dog-based meme coins, which once dominated the meme coin category, have seen a modest increase of around 6.3% in the past 24 hours.
Small-cap dog meme coins are driving this growth, while popular ones like Dogecoin (DOGE) and Shiba Inu (SHIB) are down 0.9% and 2.6%, trading at $0.1085 and $0.00001638, respectively.
Let’s dive deeper into the meme coin ecosystem, explore the latest developments, and consider what could come next as the market continues to recover.
The furor around Solana's Pump.fun
In recent months, Solana-based marketplace Pump.fun has emerged as a hub for meme coins.
Pump.fun allows users to create and distribute their own tokens, often memecoins. These tokens typically have no intrinsic value beyond their novelty and the community that is created around them.
What sets Pump.fun apart is its unique bonding curve mechanism: as demand for a token increases, its price rises along a curve, rewarding early investors.
Once a token’s market cap reaches $69,000, it qualifies for listing on the Solana-based decentralized exchange Raydium, where $12,000 worth of tokens are deposited and then burned.
Pump.fun has seen substantial growth in revenue generation. At its inception in March 2024, the platform generated an average daily revenue of between $50,000 and $100,000.
Fast forward to July 9th and those numbers have risen to an average of $50,000 to $700,000 a day, with some days even exceeding a million.
It is worth noting that on July 1, Pump.fun achieved its highest revenue ever of $1.99 million, almost reaching the $2 million mark, representing a 40-fold increase since its inception just a few months ago.
With such rapid growth, the platform has attracted the attention of numerous celebrities, although many of its meme coins struggle to maintain lasting market interest.
Solana-based meme coins continue their dominance
The latest rumor is revolving around Lionel Messi, the legendary Argentine footballer and FC Barcelona icon, who recently endorsed the Solana Water (WATER) memecoin on his instagram account to his 504 million followers via a story. Water’s instagram page reaffirmed Messi’s endorsement as an official representative.
Following its announcement, according to CoinGecko, WATER surged nearly 180% in the past 24 hours through July 9, trading at $0.0008998, though it was still 68% below its all-time high of $0.00278.
Released just two weeks ago, WATER is now Commands a market cap of $66 million and a daily trading volume of nearly $100 million, according to DEX Screener.
Furthermore, Solana-based pairs dominate on DEX Screener, with 75 of the top 100 pairs being Solana-based.
SOL-based pairs, most of which are meme coins, have collectively accumulated approximately $2 billion in trading volume in the past 24 hours, surpassing ethereum-based pairs with $1.5 billion, Binance Smart Chain (BSC) pairs with $780 million, and Base pairs with $630 million, reflecting the growing interest in Solana-based meme coins.
Amid this enthusiasm, Solana co-founder Anatoly Yakovenko has proposed further advancements in this sector. He suggested hiring developers to create custom features for meme coins, thereby reversing the initial coin offering (ICO) process.
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Yakovenko’s proposal involves meme teams offering grants to developers, who would then choose the best options among projects with fair and transparent terms.
His proposal, shared on social media, sparked discussions about how meme projects could establish a consistent onboarding process for retail users and incentivize institutional investors to adopt cryptocurrencies.
What to expect next?
Meme coins are no longer limited to DOGE and SHIB. With the rise of celebrity tokens, PolitiFi tokens, and a general surge in new meme coins, the market is becoming saturated. Thousands of meme coins are entering the space every day, each with its own unique community and story.
If the bullish momentum continues and the market continues to recover, we could see meme coins rise even higher.
At their peak this year, meme coins collectively reached a market capitalization of over $70 billion. However, this figure has declined by approximately 35.7% to approximately $45 billion as of today.
This scenario mirrors the nft boom of 2020 and 2021. During that period, nfts offered little real utility beyond being collectibles, leading to a massive crash.
While nfts have since evolved to provide more utility, the sector has struggled to regain its former glory. The same could be happening with meme coins.
Despite their current popularity, many meme coins lack substantial utility and their value is often driven by hype and community enthusiasm.
As we move forward, it is crucial to approach meme coin investments with caution. Market volatility means that prices can rise or fall quickly.
While there is the potential for huge profits, there is also the risk of substantial losses. It is essential to thoroughly research and understand the fundamentals of each currency before investing.
Stay informed, diversify your investments and never invest more than you can afford to lose.
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