In a market rife with volatility, memecoins have taken center stage, capturing investors’ portfolios, according to a report from analytics firm Kaiko.
Dogecoin (DOGE), the memecoin par excellencehas once again led trading volumesjust as it did during the 2021 rallies.
On that occasion, his popularity took off thanks to the support of figures such as Elon Musk and Bitcoin-y-30-ether/” target=”_blank” rel=”noreferrer noopener”>Mark Cuban, describes Kaiko.
This year, DOGE found new momentum. The president-elect of the United States, Donald Trump, advertisement the creation of a “Department of Government Efficiency” (DOGE), whose acronym in English coincides with the Cryptocurrency‘s ticker.
This department, which will be led by Musk himself and Vivek Ramaswamy, will focus on reducing government bureaucracy, optimizing regulationsand restructure federal agencies.
The advertisement interest in DOGE skyrocketednot only as a digital asset but also as a cultural and political phenomenon. The following chart presents the evolution of the cumulative returns of various memecoins over a specific period, ranging from November 7 to November 17. This rally was led by dogecoin last week.
Evolution of the cumulative returns of various memecoins. Source: Kaiko.
This renewed enthusiasm led DOGE to surpass automotive giants like Volkswagen, BMW, and Ford in market capitalization, as CriptoNoticias reported.
The rise of new memecoins
Beyond DOGE, 2024 has been a crucial year for the evolution of memecoins. This has been driven by platforms such as pump.fun, based on the Solana network, which has facilitated the creation of new memecoins.
In fact, these types of tools have allowed the majority of new memecoin emissions this year to have been on said network.
These platforms allow users to launch tokens with ease, providing initial liquidity. However, the risk remains high, since while some memecoins generate million-dollar profits, 95% of them result in losses for buyers, Kaiko warns.
A notable case is Peanut the Squirrel (PNUT), inspired by a squirrel euthanized after being removed from its home by the New York Department of Environmental Conservation.
This token, which quickly captured the attention of the market, reached a capitalization of 1.6 billion dollarsranking among the top 100 cryptocurrencies. Its listing on Binance on November 11 was an additional catalyst for its success.
According to CoinGecko datathe market capitalization of these tokens in the Solana ecosystem has exceeded 22,000 million dollars.
Market capitalization of the Solana network memecoins. Source: CoinGecko.
The expansion in exchanges
The memecoin frenzy has also been reflected in the growing number of meme cryptocurrencies listed on the exchanges of the United States.
In 2024, Approximately 35% of new cryptocurrencies on US exchanges were memecoinsa significant increase compared to the 20% recorded in 2023.
Increased participation on exchanges has incentivized market makers to provide liquidity, driving the depth of the memecoin market on US exchanges. to an all-time high of $110 million last weekas seen in the following graph.
Liquidity of memecoins, measured by 1% market depth on US exchanges. Source: Kaiko.
“While large-cap meme tokens such as Shiba Inu (SHIB) and DOGE continue to dominate with over 70% of the total depth market share, their share has been gradually declining, indicating a growing interest in larger tokens.” small,” explains Kaiko, an analysis firm.
The drivers behind the phenomenon
The rise of memecoins is not only due to entertainment. According to Binancethese cryptocurrencies reflect core values such as decentralization and transparency.
However, they prioritize financial gains over technological innovation. This approach, combined with the cultural influence of memes and the interest of younger generations such as millennials and generation Z, has made memecoins an attractive alternative to the traditional financial systemespecially in a context of money devaluation.
From the resurgence of DOGE to the proliferation of new memecoins on networks like Solana, this phenomenon reflects the fusion of digital culture, economic innovation and financial aspirations. Although risky, memecoins have proven to be a symbol of transformative power for the industry and pop culture, consolidating its place in a market that continues to evolve at great speed.
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