Meme coins have performed very well in the past few months, and consistently attracted capital inflows- can this dent BTC's run?
Does this mean memecoins are taking the spotlight away from Bitcoin? Will the public attention and capital inflows to the meme markets significantly impact Bitcoin’s demand?The recent trend of memecoins skyrocketing in the Solana ecosystem is a good example of how easy it is to create tokens and gain a small fraction of the public’s attention, even if it is for a brief moment.However, from a market capitalization standpoint, memecoins are a tiny fraction of Bitcoin’s size.
Therefore, social media engagement was still in favor of Bitcoin. Additionally, the derivatives and spot market of Bitcoin are likely too big for memecoins to meaningfully chip away at.The number of cryptocurrencies in the market has increased drastically year after year. In January 2021, an estimated 4,154 tokens were in the market. In March 2024 that number has increased to 13,217, and counting.
OG crypto traders talk about tokens randomly popping off during a bull run and making triple-digit percentage gains within days. In that regard, memecoins are upfront and honest about their intentions. They bring a community together through jokes and vibes, promise no product expect a potential return on investment and some fun during the journey toward these gains.
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