In a historic moment for the crypto market, memecoins have led the new bull run, demonstrating remarkable growth for the second time. This phenomenon has sparked a debate, with some criticizing meme tokens for their perceived lack of value and potential harm to the industry. On the other hand, many praise them for their ability to engage communities and attract new users to the crypto space.
The recent surge in memecoin transactions has redefined the leaders in the crypto storage landscape and has significantly impacted the market. By the end of March 2024, the top meme coins’ capitalization reached $80 billion, nearing the all-time highs seen during the previous rally in 2021. Notable examples include BONK, known as “The Dog Coin of the People,” and Book of Meme (BOME), a Solana-based token that experienced a 457-fold increase since its listing on Binance. Amidst the surge in meme coin activities, the market capitalization of memecoins has approached its 2021 peak.
The growth in weekly active users for web3 wallets has also been notable, with one of the top five wallets experiencing an 18% increase and two others nearly doubling in user numbers. Bitget Wallet, a solution developed by the crypto exchange Bitget, has played a significant role in this growth. The wallet, which recently listed trading pairs with BOME and BONK, has likely contributed to the surge in transaction volume.
The evolving web3 landscape is evident as the dominance of MetaMask in processing transactions dropped from 100% to nearly 19%, making way for new players. The divisive nature of memecoins is evident in the differing views within the market. While some, such as Franklin Templeton, a trillion-dollar asset management firm, are frustrated with the overshadowing of legitimate projects by billion-dollar meme coins, others argue that memecoins are inadvertently introducing newcomers to web3 basics and fostering community engagement.
It is undeniable that memecoins are currently transforming the crypto market by influencing the value of L1 chain coins like Ethereum and Solana and reshaping the web3 wallet leaderboard. The impact of meme coins in the upcoming rally is expected to bring further changes to the crypto market.