138 New Meme Coins Surge Amid Stalled Bitcoin Rally, Meme Token Mania Continues Unabated

The meme coin craze continues to thrive unabated despite a stagnant rally in Bitcoin (BTC). According to data from CoinMarketCap, a record 138 meme coins were recorded in April, surpassing the previous count of only 18 in April 2023. It is estimated that the true number could be even higher, as the site only lists around 10% of all existing tokens. As of press time, there are currently 2,229 meme coins listed on CoinMarketCap, collectively worth more than $50 billion, approaching the market values of major financial institutions like JPMorgan (JPM) and electric vehicle manufacturer Tesla (TSLA). Despite criticism that these coins lack practicality or functionality, many investors participate in them due to their potential for profit, perceived democracy, and sheer entertainment value. Vitalik Buterin, the creator of prominent smart contract blockchain Ethereum, which also houses several well-known meme tokens, explained in a blog post that these assets serve three purposes – profitability, democracy, and amusement. Arthur Hayes, a former CEO of crypto exchange BitMEX and present CIO at Maelstrom, views meme coins as a beneficial force driving innovation within the blockchain ecosystem. Solana, a programmable blockchain known for lower transaction costs and faster speeds than its competitor Ethereum, has emerged as a new haven for these meme coins since late last year, as evidenced by a spike in network activity during Q1 2022 that propelled Solana’s price over $200 for the first time since November 2021. “Due to high gas fees, degen activity has shifted partly away from Ethereum. Memes such as Bonk on Solana and Bald on Base have garnered popularity,” remarked Crypto Coryo. In recent weeks, a notable meme token called pepe (PEPE) has drawn significant attention. PEPE has witnessed an almost 17% uptick in value over the past week, ranking ninth in terms of overall performance across all digital currencies listed on CoinMarketCap. Moreover, PEPE has emerged as the second-highest perpetual futures open interest (OI) to market capitalization ratio, as per data compiled by Paris-based analytics firm Kaiko. Dogifwhat (WIF), another meme coin, holds the highest OI-to-market cap ratio, indicating that trading positions for these tokens are relatively larger compared to their respective market values. This suggests that price discovery for these assets is more heavily concentrated in perpetual futures markets. Edited by Parikshit Mishra.