A Market Analysis Of The Most Popular Memecoins
The top 5 Memecoins had a market worth of nearly $24 billion as of November 3rd, 2022, and over $4 billion was traded in a single day. Memecoins have gained enormous support and popularity despite having little to no utility; Dogecoin has over 4 million unique addresses holding the token. The idea of meme coins has grown to be one of the most discussed investment prospects in the cryptocurrency sector, with the 25000000% price increase of the shiba inu serving as a reminder of the overall profitability of these viral trend-inspired currencies. Let's study the Memecoin market, including its history, strategic advantages, disadvantages, and future potentials.
A Brief History of Memecoins
Billy Marcus and Jackson Palmer launched Dogecoin, the first meme coin, in 2013 as a jest at Bitcoin. Dogecoin was created based on the Shiba Inu meme, a well-known Japanese hunting dog breed.
As a result of Elon Musk's 2020 tweet supporting the adoption of Dogecoin, meme coins have seen a boom in popularity and several meme coins have been created. There were around 124 meme coins in circulation by October 2021 and the most notable among them are Shiba Inu and Dogecoin.
Meme coins often have an image of a well-known meme as the logo or a well-known meme as the project's centerpiece and are mostly inspired by projects that attempted to mimic Dogecoin.
What Are Memecoins?
Meme coins are digital currencies that draw inspiration from online jokes and memes. Animated character or animal meme pictures are occasionally used to identify meme coins, which are typically not meant to be taken seriously.
Meme coins commonly have vibrant online communities that encourage their development and acquire traction when members of the community invest in the most recent one to get in on the meme coin.
A Market Analysis Of The Most Popular Memecoins
Dogecoin (DOGE) is an open-source, peer-to-peer cryptocurrency. It was the first meme coin and it was launched in December 2013 with a Shiba Inu puppy as its logo. Dogecoin's blockchain possesses several merits due to its being based on Litecoin's core technology. With about 4,446,417 unique wallets and over $17 billion in market capitalization, Dogecoin remains the most popular memecoin.
Shiba Inu ($SHIB)
The self styled "Dogecoin killer," Shiba Inu, was released in August 2020. The unknown developers of Shiba Inu stated in their "woofpaper" that they intended to withdraw it from circulation by donating 50% of the total supply to Vitalik Buterin, the inventor of Ethereum. On May 13, 2021, Vitalik Buterin donated more than 50 trillion SHIB (valued more than $1 billion at the time) to the India COVID-Crypto Relief Fund. He then burned around 90% of the SHIB that remained in his possession. By transferring them to a defunct blockchain address, Vitalik Buterin took 410 trillion SHIB (worth $6.7 billion at the time) out of circulation.
Shiba Inu has a market capitalization of $6.9 billion and about 1,233,219 unique addresses holding the token.
Dogelon Mars ($ELON)
Dogelon Mars is a doge-themed token project established on the Ethereum network that makes reference to Elon Musk's plan to colonize Mars and seeks to emulate Dogecoin's (DOGE) popularity. Dogelon Mars' anonymous creators locked 50% of all ELON liquidity to a Uniswap liquidity pool. The other half was given to Ethereum co-founder Vitalik Buterin, who subsequently gave them to a number of organizations and DAOs. Dogelon Mars has a market capitalization of over $240 million. 141716 holders and a community of over 500K Twitter followers. The Dogelon Mars community has made it their mission to distribute ELON coins to victims of cryptocurrency frauds in an effort to help them recover some of their losses.
Baby Doge Coin ($BabyDoge)
Within just two weeks of its introduction on June 1, 2021, Baby Doge's price increased by 1,000%. It reached a staggering $200 million market cap by the third week, and by the fourth week, there were 160,000 owners of the currency.
After tweeting "Baby Doge, doo, doo, doo, doo," in apparent allusion to the Baby Shark Dance, a children's song and the most-watched video on YouTube with 8.8 billion views, Elon Musk assisted in driving up its price by as much as 130%.
Dogecoin and Baby Doge have a lot in common in terms of symbolism, however Baby Doge is a BEP-20 token that was created on the Binance Smart Chain as opposed to Dogecoin, which runs on its own blockchain network. The market capitalization of Baby Doge is presently $159 million.
Dogechain is a Polygon network-based Ethereum Virtual Machine (EVM)-compatible blockchain with over 55 million unique transactions and over 250,000 active wallets since its launch in August 2022. Dogechains daily transactions reached an all-time high of +3 million in September, temporarily surpassing Ethereum, Cardano, Cosmos, and Polygon.
On Friday, October 21, 2022, Dogechain, the community-driven layer 2 for DOGE, revealed their plan to burn up to 80% of its native DC currency. The projected burn will be the greatest in crypto history, wiping out more than $1 billion in FDV at the present value from the chain.
Dogechain has a market cap of $22 million and over 5,000 holders.
Elon Musk announced on Twitter in June 2021 that he would be naming his family pet Shiba Inu "Floki," and immediately, the group of developers behind Floki Inu sprang into action, using Musk's influence to produce a new token with a dog theme. When Elon Musk revealed on September 12 that his family had finally acquired the dog, FLOKI had already started to trade on the market. LOKI is a cryptocurrency that operates on the Ethereum and Binance Smart Chain (BSC) blockchains. Its goal is to create schools in underdeveloped nations as part of its charitable endeavors, and it also collaborates with Kimbal Musk's gardening initiative, the Million Gardens Movement. . The market capitalization of Floki is above $105 million, and it is held by more than 61,280 different addresses.
Lhasa Apso Coin ($APSO)
Apso coin is one of the first meme currencies on the Aptos Network, and aspires to lead the Aptos blockchain in terms of meme tokens. It chooses the Lhasa Apso breed, a dog species that is intelligent, devoted, and courageous, as its logo since these are the traits Apso Coin aims to convey.
In addition, Lhasa Apso Coin hopes to bring together the Aptos blockchain and help it develop as a cohesive team with all the amazing other projects.
Over 8800 Aptos wallet owners were whitelisted by Apso for a 10,000,000 $APSO airdrop when it launched on November 7th, 2022.
The Merits Of Meme Coins
- Huge Daily Trading Volumes:
Meme coins are more volatile than mainstream cryptocurrencies such as Bitcoin and Ethereum, and their value can fluctuate dramatically in an instant. Given the lack of supply constraints and their current low price, investing in a meme coin now might result in beneficial long-term profits. Because meme coins are so cheap, investors may buy more of them, and if their value rises in the future, even a small gain might have a big impact.
- Huge Potential ROI
Investing in Meme coins might result in massive returns on investment. Dogecoin, for example, has surged in value by around 10000% since its inception. A $10,000 investment in Dogecoin at inception, for example, would have yielded more than $1 million. Due to the Shiba Inu's price rise of 25000000% at its All Time High, a $1,000 investment at debut would have grown to $250,000,000 at its ATH.
- Huge Influencer Backing
Meme coins gain popularity as a consequence of internet advertising by influencers, small-scale investors, and cryptocurrency traders. The meme stock war of late 2020, in which the Reddit group WallStreetBets greatly exaggerated the value of GameStop's shares, caused the first meme coin booms. Following that, a second set of Redditors created memes targeted at increasing Dogecoin's value in a similar fashion, and as the memes spread, Dogecoin's recognition and acceptance began. Elon Musk also jumped on board and continues to tweet about Dogecoin, and in a January 2022 tweet, he vowed to eat a Happy Meal from McDonald's live on television if the fast food business began accepting Dogecoin as payment.
- Large Community Of Holders:
Because of the vast influencer advertising, meme coins attract a big and devoted community of followers, which frequently translates to a growth in the number of holders. Tokens with more holders pump quicker because a $1 purchase by a large number of holders may have a substantial influence on demand and price.
Drawbacks Of Meme Coins
- High Volatility
Meme coins are now one of the most volatile types of cash. They have huge revenue gains when the market is favorable and substantial revenue losses when the market is negative or uncertain.
Investors should keep in mind that meme coins are used in internet memes. As a result, they share many traits with them, such as the tendency to grow viral and become obsolete quickly.
- Possibility Of Rug Pulls Or Pump And Dumps
For those who are unfamiliar with the term, a rug pull happens when development teams sell off all of their coins after pushing up prices. Investors are the ones that get the rug pulled out from under them, leaving them penniless as the value of that coin plummets to nothing. Squid token and snow dog are two recent examples of meme currencies that allegedly resulted in a rug pull.
It's also a red indicator when the whole community's purpose is to boost the coin's value by urging new investors to acquire the token in the hopes that the price will rise even more as most influencers dump the token on other investors.
- Poor Tokenomics
Tokenomics is the distribution of cryptocurrency tokens. A single entity controls a considerable chunk of the entire supply of most Meme currencies. If a significant token holder decides to dump (sell out) their coins, the price of such tokens will fall.
- Infinite Supply
Meme currencies often have an endless or almost infinite supply, with billions of pieces in circulation. Scarcity produces demand, and demand drives up the price when there is a limited supply. However, because meme coins have an endless supply, investors are skeptical that values would skyrocket. Furthermore, some meme coins lack a mechanism that "burns" or permanently removes them from circulation.
- Little or No Utilities:
Major cryptocurrencies are created to address real-world issues. The ultimate objective is for it to be widely accepted by merchants, establishing a new kind of decentralized currency and transforming a range of sectors. Meme coins, on the other hand, currently serve no real-world use, and the most of them were developed to earn a fast cash. However, while meme coins are entertaining, they are also high-risk investments with little or no inherent value.
More established tokens avoid the drawbacks of meme coins and gain even wider acceptance. A recent example is $APT, the native token of the Aptos chain.
Aptos $APT had a successful launch, and within two weeks of its introduction, over 11 protocols, including PancakeSwap, AUX exchange, LiquidSwap, Ditto, AnimeSwap, and Aries, had been deployed on the Aptos network. Aptos has achieved a slew of milestones in the 10 days after its mainnet went live, including the introduction of the Aptos Names Service (ANS) and a +614% increase in TVL to over $35 million. The Aptos ecosystem provides several use cases for $APT, ranging from staking to transaction fees.
Pontem and Aptos have teamed up to create open source solutions for the Aptos Blockchain. Pontem is collaborating with Aptos to develop a roadmap of dApps that will be launched on the Aptos Blockchain, with technical support from the Aptos team, and it will be easy to transfer Aptos dApps to other chains thanks to Pontem's future Move VM implementation for Solidity.
Pontem is committed to increasing the deployment of smart contracts on Aptos in addition to building on Aptos. Pontem also gives developers with tools and technical resources for creating smart contracts using a low-code tool and pre-made Move templates.
Visit https://pontem.network/ for more information on Pontem.