BitMEX Co-founder Backs Meme Coins: A Boon For Dogecoin, Shiba Inu, PEPE?
19 June 2024 - 6:00AM
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Meme coins, the once-dismissed “joke” tokens, are rapidly
solidifying their position in the multi-trillion-dollar scene.
According to CoinMarketCap, meme coins now command a cumulative
market cap of over $45 billion. Interestingly, they are on an
upward trajectory as thousands of meme coins are minted
predominantly on top platforms like Solana, Ethereum, and Base.
Analysts and investors are taking notice as meme coins like BOME,
PEPE, and Dogecoin boom. Most predict this subset of crypto will
expand and become a core part of the industry in the coming years.
Arthur Hayes Backs Meme Coins In a recent interview, Arthur Hayes,
the BitMEX co-founder, joined the growing list of meme coin
supporters. Hayes backed meme coins, stating that these tokens are
increasingly gaining traction because of their simplicity. Unlike
complex decentralized finance (DeFi) protocols or AI, they require
no technical knowledge. Therefore, this feature and accessibility
continue to broaden their appeal. This position also seems to
resonate with Raoul Pal, who, in the same interview, added that
meme coins are rising because of the cultural connection these
tokens tag. As constructed, meme coins are meant to ride on
internet hype and cultural relevance. Related Reading: Potential
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Therefore, their playful nature and relatable themes resonate with
a global audience. In turn, this helps forge a strong connection
with the trend, as evidenced by the popularity of the viral BODEN
meme coin. More analysts are coming out to back these tokens.
Earlier, one analyst said at least three of these tokens would each
command at least $100 billion in market cap in the next crypto bull
run. Dogecoin is the most valuable meme coin, with a market cap
exceeding $20 billion. If Dogecoin, for example, rallies to command
a $100 billion market cap, DOGE holders will massively benefit. As
of mid-June, only Bitcoin, Ethereum, and USDT, a stablecoin, have
market caps exceeding $100 billion. Despite its sharp expansion,
even Solana is still perched at fourth, boasting a slightly over
$66 billion market cap. Aptos To Take Over From Solana: A Meme Coin
Host While Hayes backed meme coins, he predicted that Aptos would
flip Solana to become the second largest and most active layer-1
platform after Ethereum within three years. Interestingly, this
clashes with the current trend and Hayes’ position. Related
Reading: Cardano Founder’s Pig NIKE Sparks Memecoin Craze, Market
Cap Nears $1 Million Because of Solana’s high scalability and low
fees, the platform is emerging as a home of meme coins, taking over
from Ethereum. Even so, Hayes didn’t provide any explanation,
saying all details will be made public in September. Earlier on,
the BitMEX co-founder downplayed the threat posed by Solana on
Ethereum’s lead. In his view, the first smart contracts platform
has strength in its developer community and anchors decentralized
finance (DeFi). Feature image from DALLE, chart from TradingView
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