Fueled By Election Buzz, Memecoins Soar 22% On Pure Speculation—Report
07 November 2024 - 8:00PM
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Memecoins are crucial to the blockchain and the cryptocurrency
community, and Binance Research highlights their unique value
proposition. According to Binance rerport, the rise of memecoins
coincides with the expansion of the world’s money supply. As money
and capital become readily accessible, risk-on investments like
Bitcoin, altcoins, and memecoins become attractive options. Related
Reading: Solana Rockets Past BNB To Claim Coveted 4th Spot In
Crypto Ranks Although memecoins promise a strong upside, they are
also a high-risk investment since they’re highly speculative and
have few use cases. However, their recent performance seems to defy
the odds—their market cap was up by 22% immediately after the US
election. Doge and PEPE coins are two of the top gainers among
coins this Wednesday, adding 15% and 11% to their values,
respectively. Binance Research: 75% Of All Memecoins Were Launched
Last Year According to a November 2024 Binance research, meme
currencies are growing in popularity because people are now looking
at risk-on investments. The report adds that the global money
supply is expanding, and many retail investors are looking at
alternative ways to generate wealth. This niche’s market value has
tripled since 2022, thanks to these coins’ popularity. Binance’s
report also mentioned the regulator’s distrust of Initial Coin
Offerings (ICOs). With this order, developers will now consider
private venture capital funding (VCs) to promote their projects.
Experts call this the “Low Float and High FDV” approach, meaning
only a few tokens are available for trading but boast a higher
valuation. Memecoins Remain An Accessible Investment Option While
the approach benefits developers and early adopters, it may put
regular investors at risk. As such, many retail investors look for
memes as alternative investment options. These are the primary
reasons why meme tokens are popular and highly accessible to all.
Binance adds that roughly 75% of all meme currencies were launched
last year. The Binance team acknowledged that many found launching
these projects easy, but sustaining their operations is
challenging. According to the same report, around 97% of all
memecoins have died, and the rest struggle but managed to ride on
the election hype this year. Related Reading: Why One Analyst Says
Now’s The Time To Buy XRP—Before It Hits $14 Memecoins Jump by 22%
In A Day, Thanks To Election Hype While these coins are considered
community-driven and accessible investments, they’re also highly
speculative. Many in the community have placed their bet on a “meme
coin supercycle” to coincide with Bitcoin’s run. The bet paid off,
and the memecoins’ market cap is now above $73 billion, reflecting
a 22% increase. Featured image from xtsupport.zendesk.com, chart
from TradingView
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