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author:TANAY VED & AMP; Matías Andrade Source: Coin Metrics Translation: Shan Ouba, Bit Chain Vision Realm
Key points:
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At present, the total market value of MEME coins is 60 billion US dollars, and it occupies more and more market share on the 1st layer network and Base of Ethereum, Solana, and so on.
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In March, the spot transaction volume (7 days average) of MEME coins reached $ 13 billion, surpassing the main blue chip encrypted assets such as Eta (ETH) and Solana (SOL).
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The high concentration of MEME coins indicates that the assets are mainly concentrated in the hands of a few holders, bringing potential market manipulation and liquidity issues.
introduction
Meme has become an important part of human culture. Over time, it has continuously changed and adapted through various media.The term “Meme” was proposed by British evolutionary scientist Richard Doukins in its 1976 pioneering book “Selfish Gene”, describing it as a cultural transmission unit, including “tunes, thoughts, and buzzwords”It emphasizes that they are genetic similarity in biological evolution.
The spread of Meme has undergone significant changes in history and is affected by social, cultural and technological changes.In ancient times, folk stories and religious symbols were early in the form of Meme, which spread through verbal or manuscripts.During World War II, the graffiti Meme “Kilroy Was Here” was widely circulated, symbolizing the existence of American soldiers.In the digital age, MEME found a new carrier through virus video and image macro (such as “DOGE”), and quickly spread on the Internet and social media platforms, making cultural concepts more widely spread than ever.
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Recently, Meme has further expanded into the phenomenon such as MEME stocks, and the collective efforts of the collective efforts on the collective efforts of GAMESTOP on the/R/WallStreetbets forum of Reddit as an example.Similarly, MEME coins such as Dogecoin and PEPE have received great attention in the world of encryption assets, creating digital value forms through blockchain and chain communities.Meme is a part of human nature, reflecting our desire to seek contact and belonging through sharing concepts.
In the report of COIN METRICS “Network Status” this week, we aim to explore the surge in MEME currency activities on the Internet such as Ethereum and Solana, focusing on the main market trend of the MEME currency industry.
The status quo of meme currency
Since the advent of Dogecoin in 2013, the MEME currency industry has expanded rapidly. As of June 2024, the total market value has expanded to $ 60 billion.The industry is characterized by encrypted assets representing familiar animals and characters. Recently, there are politicians with humorous elements to attract attention and promote community participation.Their growth is mainly due to high speculation, mainly driven by market emotions, not inherent value.
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(Note: Solana’s MEME coins and other SPL tokens will soon be used as the expansion of Solana network data)
Today’s most valuable MEME coins include Dogecoin (Doge) running as a independent workload, and ERC-20 tokes such as Shiba Inu (Shib) and PEPE (PEPE). Its market value exceeds 1000 in 2021$ 100 million.Recently, Solana has become a hot spot for MEME coins. Due to low transaction costs, growth in ecosystems, and easily creating tokens through platforms such as Pump.fun, it has spawned MEME coins like Dogwifhat (WIF) and Jeo Boden (Boden).
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According to the Datonomy ™ classification of Coin Metrics, the MEME coin industry has performed well compared to other industries of the crypto asset ecosystem.Compared with the major blue -chip encryption assets, MEME coins have shown a strong relative strength and also surpassing the information technology industry. The industry has made progress due to the development of centralized computing and the development of artificial intelligence (AI) applications.
From October 2023 to 2024, the average return of MEME coins reached 740%, which was particularly obvious.This has also promoted the growth of the MEME currency index, such as the GMCI Meme index, which reflects the efforts of quantifying the industry’s performance.Although it is related to the speculative phase of the market cycle, this performance reflects the recent growth of the industry’s mental share in retail and institutional investors.
Meme currency market activity
Focusing on the field of MEME currency has continued to increase, further promoting the activity of the digital asset market.Although the transaction volume is generally consistent with the broader market trend, in March, the spot trading volume of MEME coins at the centralized exchange reached 13 billion US dollars, even more than Ethereum (ETH) and Solana (ETH) and Solana (ETH) (ETH) and Solana (Sol) major assets.The decentralized exchange (DEX) has also played a key role in the MEME currency ecosystem, providing basic infrastructure of Chi Creation and asset transactions, and promoting the liquidity and accessibility of wide users.
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From the perspective of relative transaction volume, the influence of veterans such as Doge and Shib seems to be weakened, and PEPE and a series of new Solana Meme coins have gained popularity, representing more than 50%of the transaction volume.This reflects investors’ recent preference for new MEME coins, which stems from its growing communities, blockchain ecosystems and higher returns.Nevertheless, the current MEME currency’s liquidity and long historical records are still important factor for potential investors.
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Similarly, the high futures unsuccessful contract shows its significant market existence and shows high speculative trading activities.The DOGE’s unbound contract has recently reached a record of 1.8 billion US dollars, while PEPE’s Weiparestan contract has soared by nearly 50%in May to $ 850 million.The surge in this unsuitled contract exceeds more than $ 3 billion, showing the increase in price fluctuations and highlighting the risk of investors’ gradually using futures positions to hedge its MEME coin.Tracking the liquidation contract is one of the basic tools for understanding speculative capital flows, especially in volatility tools, which may be a pioneering sign of market interest transfer or liquidation.
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MEME currency user growth and risk
Although the market existence of MEME currency is giving up with user growth, it should be noted that the risks related to this field.The Gini coefficient is an indicator for measuring population income or wealth distribution, from 0 (completely equal) to 1 (maximum inequality).In the context of Meme currency, the Gini coefficient can be used to evaluate the distribution of tokens between different addresses.
High -concentration tokens hold the risk of market manipulation.Large holders are usually called “whale”, which can significantly affect token prices by buying or selling a large amount at one time, causing fluctuations.In addition, if a minority address holds most token, it may lead to liquidity problems, which may be more serious when a minority physical control liquidity is provided in the decentralized exchange.
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These MEME coins (about 0.8) highlight the significant concentration of tokens.This concentration brings various risks, including potential market manipulation, liquidity issues, and investors’ vigilance. These should be carefully considered when evaluating these tokens.Before considering any investment in the MEME currency industry, understanding of these dynamics is essential for evaluating the stability and potential risks of these digital assets.
in conclusion
The MEME currency industry has shown significant growth and influence in the cryptocurrency market. Due to the virus nature of Meme and its convenience, a solid foothold has been found on the blockchain.Since the introduction of the existing goods ETF, the industry has performed strongly with Bitcoin, highlighting its increasing attraction in retail and institutional investors.However, the Gini coefficient of up to 0.8 indicates the significant concentration of tokens, bringing risks such as market manipulation and liquidity problems. In addition, most investors cannot tolerate volatility.With the continuous development of the industry, understanding of these dynamics is essential for evaluating the evolution and potential risks of MEME coins.
Network data insight
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Compared with last week, the transfer amount of the Bitcoin network (after adjustment) fell by 28%, and the transfer amount of the Ethereum network fell by 21%.The active address of Bitcoin has increased by 6%, and the active address of Ethereum has increased by 3%
