According to an analyst, CoinMarketCap documented an unprecedented 138 memecoins in April.
The surge in meme coins persists despite the slowdown in bitcoin’s rally. In April, CoinMarketCap recorded an all-time high of 138 meme coins, a stark increase from just 18 in April 2023, as noted by the anonymous analyst Crypto Coryo. However, the actual number could be significantly higher, with reports suggesting that CoinMarketCap only accounts for 10% of all tokens.
As of now, CoinMarketCap lists 2,229 meme coins with a collective market capitalization exceeding $50 billion, nearly rivaling the market value of JPMorgan and Tesla combined.
Certainly! Vitalik Buterin, the founder of Ethereum, acknowledges that meme coins are often criticized for lacking utility, being primarily driven by speculation. He highlights that people engage with meme coins because they perceive the potential for value appreciation, enjoy their democratic nature, and find them entertaining.
Arthur Hayes, co-founder of BitMEX and now CIO at Maelstrom, sees meme coins as potentially beneficial for the blockchain ecosystem, as they can attract attention and encourage more engineers to participate, ultimately contributing to the growth of the chain.
Since late last year, Solana, a programmable blockchain known for its lower costs and faster transactions compared to Ethereum, has emerged as the preferred platform for various tokens. During the first quarter, a surge in meme-related activities drove record network usage on Solana, propelling the price of SOL above $200 for the first time since November 2021.
“With Ethereum’s high gas fees, speculative trading has shifted, in part, to Solana. Examples include Bonk and Bald moving to Solana. Consequently, Solana has become the primary hub for meme coins,” observed Crypto Coryo.
Fast money chasing PEPE
Bitcoin’s recent downturn in price has led traders to turn their attention to a popular meme token called Pepe (PEPE). Over the past seven days, PEPE has surged by nearly 17%, making it the ninth-best-performing cryptocurrency on CoinMarketCap’s ranking.
Additionally, data from Paris-based Kaiko reveals that PEPE holds the second-highest ratio of perpetual futures open interest (OI) to market capitalization. Another meme coin, Dogifwhat (WIF), tops the list with the highest OI-to-market cap ratio.
According to Kaiko’s weekly newsletter, both PEPE and WIF have double the ratio compared to other altcoins. A higher ratio signifies that the derivative market’s positioning for these assets is substantial relative to their market cap, leading to more concentrated price discovery in perpetual futures markets. Notional open interest denotes the dollar value locked in the number of active or open futures contracts.
Read More: Turbo memecoin surges 40% amidst rising U.S. trend
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