Meme coins remain a hot cryptocurrency during the second quarter of this year, following incredible runs for popular tokens like Dogwifhat in the first quarter.
Blockchain researcher Crypto Coreo male CoinMarketCap acquired over 138 new memecoins launched under the ERC-20 standard last month.
While the number has increased more than seven-fold since April of last year, CoinMarketCap only lists a small portion of the tokens deployed. In other words, the number of new meme coins entering the market in the past 30 days is likely much higher.
Meme coin speculation is enhanced by advanced tools
Launching a meme coin, or any cryptocurrency, was much more complicated a couple of years ago and required technical expertise that few had. However, emerging blockchain solutions and tools have made it possible to do this with just a few clicks, encouraging more innovators to enter the market.
New token standards have lowered the barrier to entry, with developers posting shells like Protocol Runes on Bitcoin (BTC) and tokens like SRC-20, DRC-20, and ASC-20 on EVM chains. The introduction of new standards and improved cross-chain transactions has also redirected liquidity from giants like Ethereum (ETH) to competitors like Solana (SOL).
Crypto Curio, citing CoinMarketCap data, highlighted Solana as the current epicenter of meme tokens, effectively dominating the space since last year. Three years ago, users had to speculate almost exclusively on ETH-based projects like Dogecoin (DOGE), Floki Inu (FLOKI), and Shiba Inu (SHIB) to find sufficient liquidity.
Currency Saturation Fears Meme
The ability to attract new users and capital to a wider range of meme plays has certainly increased, but the new model presents unique weaknesses despite its accessibility.
Better tools and improved decentralized networks have led to an oversaturated memecoin market. Crypto firm Koryo on X noted that most of these tokens will go to zero, making it difficult for traders to look for rewards.
“This is not just a bull market thing. The number of memes is very high right now and continues to rise at a rapid pace. Even in terms of strategies, if you take the full on-chain approach and try to be early, RR is great when it works but the win rate is low. Conversely Hence, if you take the social approach of waiting for CT to take over, your win rate will be higher but you will lose most of your RR.
Crypto Koryo, a blockchain technology researcher