- Memecoins, buoyed by low fees on Solana, see sustained interest with Book of Meme leading a 28% market recovery.
- VanEck’s MarketVector Meme Coin Index, targeting top memecoins, significantly outperformed major crypto assets with a 160% rise.
Memecoins, love ‘em or hate ‘em – analysts believe they could be with us for a little longer. Amid low fees on the Solana network we have seen sustained interest in the asset class, with Book of Meme (BOME) leading the market recovery with a whopping 28% over the past 24 hours.
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Fittingly VanEck, a prominent New York-based asset management firm, has introduced the MarketVector Meme Coin Index (MEMECOIN), designed to capitalise on the surging popularity of meme-based cryptocurrencies.
This new index specifically targets the top six memecoins, including Dogecoin (DOGE), Shiba Inu (SHIB), Dogwifhat (WIF), PEPE, BONK and Floki Inu (FLOKI), aiming to provide a structured investment approach within this volatile segment.
Over the past year, the MEMECOIN index has witnessed a remarkable surge, outperforming other major cryptocurrency indices with a 160% increase.
In comparison, the S&P Bitcoin Index saw a gain of 127%, and Bitcoin is up around 130%. This performance underscores the explosive potential and growing investor interest in memecoins.
They currently boast a market capitalisation of US$56 billion (AU$84 billion), with MEMECOIN tracking around US$50 billion (AU$75 billion) of this value.
US Anticipates Election with Boden and Tremp Tokens
Undoubtedly memecoins are surging as the whole crypto market recovers amid better-than-expected economic data from the US.
In April, US core inflation decreased for the first time in six months, raising hopes for potential rate cuts in 2024. The news sparked a rally in Bitcoin and other cryptocurrencies, including memecoins.
At the time of writing BOME is up 26% well ahead of real projects like Fantom and the NEAR Protocol which are trying to solve real (or virtual) world problems.
Will the memecoin craze be sustainable? Chances are it will, given the hype around Jeo Boden and Doland Tremp – memecoins in a new class of so-called PoliFi are likely here to stay for a while.
The narrative of memecoins inspired by politicians and political events, such as the BODEN and TREMP tokens named after US presidential candidates, has a market capitalisation close to US$600 million (AU$897 million).
With the US presidential elections scheduled for November later this year, the popularity and influence of these tokens are expected to increase as the political climate heats up.
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