Meme Coin Demand is Stronger Than Ever, Crypto Analyst Says

As a crypto investor, I’ve noticed an astounding increase in the number of meme coins listed on Data tracking website CoinMarketCap. In April alone, there were a record-breaking 138 meme coins, a significant jump from the 18 that were listed just a month prior in April 2023. However, it’s important to note that this number could be much higher, as CoinMarketCap only reports on approximately 10% of all existing tokens according to pseudonymous analyst Crypto Coryo.

As of the current moment, a total of 2,229 meme coins are featured on CoinMarketCap, amassing a collective market capitalization surpassing $50 billion. This figure is close to the market worth of JPMorgan Chase (JPM) and Tesla, Inc. (TSLA).

As a crypto investor, I must admit that the achievement of a meme coin gaining significant value is quite remarkable. Normally, these tokens are subject to criticism due to their perceived lack of practical application or real-world use cases. Instead, they’re seen as mere instruments for speculation in the market.

As a researcher studying the dynamics of meme coin markets, I’ve discovered that people are drawn to participate for various reasons. Firstly, there’s the potential upside of price appreciation. Secondly, the decentralized nature of these coins fosters a democratic and inclusive environment, allowing anyone to join in. Lastly, let’s not forget the entertaining factor – meme coins can be fun!

Arthur Hayes, the co-founder and ex-CEO of cryptocurrency exchange BitMEX, as well as the CIO (Chief Investment Officer) at Maelstrom, advocates for gaining a more profound perspective on meme coins to fuel expansion in blockchain ecosystems.

In an interview with Real Vision on March 30, Hayes remarked, “You may dismiss these things as insignificant or unimportant, but if they generate interest and attract more engineers to the field, they hold positive value for the chain as a whole.”

“Because of expensive gas costs, some degenerate crypto activities have shifted (to some extent) from Ethereum. For instance, Bonk has emerged on Solana, and Bald has taken root on Base. Currently, Solana is where meme coins are thriving,” Crypto Coryo pointed out.

The term “notional open interest” represents the monetary commitment tied to the quantity of currently active or open futures contracts.