CEO Says Memecoins Are ‘One f the Most Powerful Narratives’ In The Crypto Market – Here’s Why

Bitcoinist
Updated Jun 14, 2024 11:16
Mitrade
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Source: DepositPhotos

Remember Doge? The Shiba Inu pup that became a digital currency sensation in 2013? Back then, it was a playful jab at the seriousness of the crypto world. Fast forward a decade, and memecoins, those internet joke-inspired tokens, are a barking mad force in the crypto economy, amassing a market cap of nearly $60 billion, according to Galaxy Digital CEO Mike Novogratz.


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This growth is attributed to the increasing popularity of internet memes and their ability to tap into the humor and creativity of the online community. The figure above is a substantial amount, especially when compared to the market caps of traditional cryptocurrencies like Bitcoin and Ethereum. Indeed, nemecoins, as Novogratz would say, is ‘one of the most powerful narratives’ in the crypto market as we speak.


From Funny To Fortune: Investing In The LOL Factor


“My son-in-law’s made a killing,” Novogratz recently said, highlighting the potential for big profits in these playful pups. But how does one value a digital currency based on a meme? Novogratz suggests it’s all about the “laugh factor.” He pointed to dogwifhat (WIF), a Solana-based meme coin inspired by a misspelling of “dog” that rocketed to a $3 billion market cap.



Evolving Ecosystem: Memecoins Get Serious


This investment strategy might sound like a gamble at a casino, but there’s a growing trend of memecoins evolving beyond the LOLz. Take Shiba Inu (SHIB) for example. Initially a parody of Dogecoin, SHIB has morphed into a project with real-world applications. It now boasts its own payment system, a decentralized name service (think crypto domain names!), and even a layer-2 scaling solution called Shibarium.


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This shift towards utility isn’t unique to SHIB. Floki Inu (FLOKI) launched TokenFi last year, a platform aiming to grab a slice of the tokenization market (think representing real-world assets like property on the blockchain). This trend suggests meme coins might be here to stay, potentially becoming more than just a flash in the pan.


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A Cautionary Tale


While Novogratz is bullish, others remain skeptical. Meme coins are notorious for wild price swings, making them a risky investment. Their long-term viability based solely on utility remains debatable. Some argue that meme coins are a distraction, diverting attention away from the true potential of crypto: fostering innovation and decentralization.


Featured image from , chart from TradingView

* The content presented above, whether from a third party or not, is considered as general advice only.  This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.

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