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Forget Meme Coins, Crypto Utility Is Already Here

Sep 16, 2024

As a seasoned researcher with a decade of experience in the ever-evolving world of cryptocurrencies, I can’t help but feel a mix of amusement and concern when it comes to memecoins. On one hand, their rapid rise and fall is reminiscent of a high school romance novel – dramatic, unpredictable, and often leaving you questioning what just happened. On the other hand, they are an integral part of our ecosystem, driving innovation, attracting newcomers, and, let’s face it, providing us with a much-needed dose of humor in this otherwise serious field.

In the realm of cryptocurrencies, memecoins have been a recurring element, but it’s only recently that this sector has expanded significantly and taken center stage in the ecosystem. The memecoin platform “Pump.fun” generated more than $100 million in income within 217 days of its launch, setting a new record for the crypto industry. However, since surpassing this milestone, the sector appears to have slowed down. As the aftermath subsides, there’s been a heated discussion among crypto enthusiasts about the impact memecoins have on the industry’s reputation.

University College Dublin instructor, Paul Dylan-Ennis, commented to The Block, “It encapsulates the most problematic aspects of our field in a single, seizure-triggering platform.

Over 99% of the memecoins introduced on Pump.fun fail to survive past their first week. Yet, users have minted approximately 2 million of these coins. Memecoins listed on CoinGecko collectively boast a market capitalization of $40 billion, which is six times greater than the total value of tokens in the Real World Asset (RWA) sector, including U.S. Treasuries and insurance, categorized as non-tokenized assets with a market cap of $6.6 billion.

Ignore The Nonsense, Crypto Utility Is Right In Front of You

Many supporters of cryptocurrency find these statistics disappointing, resulting in a noticeable increase of individuals often referred to as “crypto skeptics” or “doubters” within the field. These individuals believe that our efforts are merely creating and spreading memes rather than making meaningful progress. Nevertheless, while some extreme corners of crypto continue to be volatile, the more serious sector of the industry is making substantial advancements.

Stablecoin market cap recently hit $175 billion, as demand for crypto’s greatest product grows. The utility and significance of USD-pegged stablecoins is often lost on crypto natives in Western countries. However, stablecoins have proven to be crucial products for people in emerging markets, whether they are avoiding hyperinflation of their native currency, or avoiding predatory remittance fees.

The progress in the creation of infrastructure for cryptocurrency transactions is ongoing. Notably, Mastercard has collaborated with Mercuryo, empowering its users to spend their self-managed cryptocurrencies at over 100 million merchants worldwide. In another significant development, PayPal and Venmo have integrated Ethereum Naming Service, allowing their customers to transfer crypto using readable names instead of conventional wallet addresses.

Approximately 113,000 individuals have chosen to switch from traditional telcos like Verizon and opted for the mobile service provided by The Helium Network, a decentralized physical infrastructure (DePIN) project that aims to compete with major telecommunications companies.

Cryptocurrencies are making their way into our daily lives, particularly through messaging platforms. For instance, Telegram, boasting approximately 1 billion monthly users, has incorporated The Open Network (TON), enabling users to transfer digital currencies as effortlessly as sending a message. Similarly, LINE, a popular Asian messenger service with over 230 million monthly active users, is considering a similar approach by integrating Kaia.
As a crypto investor, I’m excited about the developments happening with TON and Kaia, both aiming to integrate cryptocurrencies into popular messaging platforms like Telegram and LINE. Recently, TADA, a leading ride-hailing service in Southeast Asia, introduced “TADA Mini,” allowing users to book rides directly through Telegram and pay using TON or USDT. This is a significant step towards mainstream crypto adoption. Moreover, Kaia Wave, an upcoming incentive program starting in Q4, is planning to offer up to $1.2 million in funding for developers creating mini apps on LINE. This could potentially accelerate the growth of cryptocurrency usage on this platform.
Beyond what’s already happening, it seems clear that the $12 billion worth of tokenized assets on the blockchain is just a taste of things to come for the RWA sector. This summer, BlackRock’s BUIDL fund, specializing in tokenized investments in U.S. Treasuries and repo agreements, surpassed half a billion dollars in capital deployment. In fact, BlackRock’s CEO Larry Fink often expresses his ambition to tokenize all assets, with the launch of BUIDL in March serving as an initial step towards this goal.

Memecoins Rarely Capture Headlines

Memecoins have stirred a lively debate within crypto circles, but “Dogwifhat” does not capture wider attention and make crypto look bad to outsiders. FTX defrauding customers and collapsing makes crypto look bad. $6 billion in DeFi exploits and hacks makes crypto look bad. VC-backed projects extracting millions and then exiting makes crypto look bad. Memecoins can make crypto look silly, but there are greater issues that damage the crypto’s image.

As an analyst, I’m fortunate to witness that the positive fundamental advancements in the cryptocurrency sector counterbalance the challenges we encounter. It’s all too easy to succumb to crypto skepticism, especially when sensational or questionable aspects of the industry grab headlines, distracting us from genuine progress. The meme coin craze seems likely to persist within crypto, but it will eventually be overshadowed as we move into a new phase of cryptocurrency adoption for practical, real-world applications.

Keep in mind that the opinions presented within this article belong solely to the writer and may not align with the perspectives of CoinDesk, Inc., its proprietors, or its associated entities.

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2024-09-17 22:07