Demand for Memecoin is Stronger Than Ever
In April, 138 memecoins reached record levels, according to CoinMarketCap data, and a total of 2,229 memecoins had a market value exceeding $50 billion. That's nearly equal to the market cap of JPMorgan and Tesla. While Memecoins have been criticized for their lack of use cases, analyst Arthur Hayes thinks they are important to the growth of the crypto ecosystem and could attract engineers to the space.
Solana has become a popular platform for memecoins because it is cheaper and faster compared to Ethereum. The memecoin frenzy in the first quarter pushed the price of Solana (SOL) above $200 for the first time since November 2021. Memecoin activity has shifted to blockchains like Solana and Base due to high gas fees on Ethereum. Especially Bonk in Solana and Bald in Base became popular.
On the other hand, meme token pepe (PEPE) has surged in popularity along with Bitcoin's choppy price movements in recent days, rising 17% in seven days to become the ninth best-performing cryptocurrency on the CoinMarketCap list. According to data from Kaiko, PEPE has the second highest consolidated futures open interest (OI) ratio by market capitalization ratio. The highest rate is held by another memecoin, Dogwifhat (WIF).
In Kaiko's weekly newsletter, it is stated that PEPE and WIF are performing twice as well as other altcoins. This high OI/market cap ratio indicates that an asset is well positioned in the derivatives market and price discovery occurs more intensively in consolidated futures.
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