Meme coins such as Dogecoin, PEPE, and WIF have continued to enjoy greater acceptance, which is evident in recent data showing that the demand for them has clocked a new high. This also undoubtedly strengthens predictions that this category of crypto tokens will be one of the leading narratives in this market cycle.
Market intelligence platform IntoTheBlock recently revealed that the demand for meme coins hit its highest in the first quarter of this year since 2021. Furthermore, the increased demand has led to the launch of newer meme coins, pushing the market cap of this crypto category to its highest in two years.
Their market currently stands at over $56 billion, meaning their aggregate value has nearly tripled this year. As expected, OG meme coins like Dogecoin (DOGE), Pepe (PEPE), and Shiba Inu (SHIB) have led the way. Dogecoin has seen its price double in 2024, while PEPE and SHIB have recorded a 5x and 2.5x gain, respectively.
Meanwhile, newcomer Dogwifhat (WIF) has also earned a spot at the table, with a 20x yearly return and rising to become the third-largest meme coin by market cap. WIF’s growth has been mainly credited to its “rampant community,” which includes well-known crypto influencer Ansem.
IntoTheBlock further revealed that meme coins have thrived in lower-fee ecosystems, with Solana recording multiple days since the beginning of the year when it surpassed Ethereum in trading volume. Thanks to this meme coin frenzy, Solana has also seen increased network activity, with Bitcoinist reporting that Solana is currently facing unprecedented levels of congestion.
Meme Coins Are Here To Stay IntoTheBlock noted that meme coins were able to achieve this record despite interest rates remaining high and no “stimmy checks” being sent out. The platform further speculated on what could be the reason for the increased demand for crypto tokens, which have been largely criticized for lacking any real-life utility.
Irrespective of the reason, it has become clear that meme coins are here to stay, seeing as they have become one of the main subjects in the crypto space over the last few months. Ethereum’s founder, Vitalik Buterin, also recently published an article in which he admitted this fact and declared that it was best to determine how these crypto tokens could gain utility.
Despite their supposed lack of utility, the buzz around meme coins could be good for the crypto space in terms of their ability to onboard a new wave of crypto users. Crypto expert Scott Melker recently highlighted how the hype around DOGE ushered in mainstream demand for crypto tokens in the 2021 bull run, and the same thing could happen in this market cycle.
DOGE price recovers above $0.18 | Source: DOGEUSDT on Tradingview.com Featured image from Coinmarketcap, chart from Tradingview.com
Sign Up for Our Newsletter! For updates and exclusive offers enter your email.
Scott Matherson Scott Matherson is a leading crypto writer at Bitcoinist, who possesses a sharp analytical mind and a deep understanding of the digital currency landscape. Scott has earned a reputation for delivering thought-provoking and well-researched articles that resonate with both newcomers and seasoned crypto enthusiasts. Outside of his writing, Scott is passionate about promoting crypto literacy and often works to educate the public on the potential of blockchain.