Memecoin Outperforms Other Cryptocurrency Industry in Q1 of 2024

Memecoin Outperforms Other Cryptocurrency Industry in Q1 of 2024

CoinGecko data shows that memecoins have suddenly become the most lucrative cryptocurrency in the first quarter of 2024. CoinGecko report provides insight into memecoins’ extraordinary rise to prominence, sparked by their widespread acceptance among regular investors and viral appeal.

Memecoins are reportedly widely associated with wild speculation and explosive price increases propelled by social factors and celebrity endorsements. The decentralized Finance (DeFi) sector also performed optimally, gaining by 98.9% in the first quarter of 2024. The top performers include Ribbon Finance, which has led by  430.8% in the quarter-to-date (QTD).

Other seconders include The Graph, Maker, and Jupiter, who also recorded strong performances. Analysis for the Artificial Intelligence (AI) sector recorded a 222% return in investment in the first quarter of 2024. Top performers includes AIOZ Network which recorded 480.2% in returns, and with 378.3%.

Rise in Memecoins Linked to Social Media, Other Performing Narratives Listed

Memecoins’ meteoric rise has confounded expectations and demonstrated the significance of social media and internet culture in influencing the cryptocurrency market. The layer-1 (L1) narratives recorded  70% in returns, with assets like Toncoin and Bitcoin Cash topping the list of most top performers.

Echelon Prime, Ronin, and Gala also had a flawless market performance. Solana layer 1 managed to gather a 70.0% return on investment. Layer 2 and GameFi were lagging, with layer 2 accounting for 39.5%, while GameFi recorded 64.4% returns. Layer 2 solutions like Optimism, Polygon, and Arbitrum performed severely compared to newly introduced solutions like Mantle and Stacks.

Stacks recorded a 142.5% rise in returns, while Mantle had 95.8%. These performances have been described as impressive, considering its status as an emerging layer 2 solution. Another new arrival, Dogwifhat, had a 2721.2% rise in value after it went viral a few months after its official launch in November 2023.

Memecoin Records Largest Investment by Market Capitalization, Records 2.32% Growth

The rise in the popularity of memecoin was also linked to the increased volume of its transactions, thereby growing its user base. Memecoin has recorded its most significant return on investment of 1,312.6% in market capitalization on average across all major tokens.

Some meme coins introduced in March also made it to the top 10 best-performing meme coins by market value at the end of the first quarter. The listed ones are Brett, Book of Meme, and Cat in a Dogs. However, Brett had the biggest return on investment with 7,727.6%  to the end of third quarter (Q3) of 2024.

Dogwifhat followed with 2,721.2% in year-to-date growth after dominating the memecoin space. Memecoins’ future is still in the air due to concerns about their viability and longevity in the face of market volatility and regulatory scrutiny. The analysis from CoinGecko emphasizes how memecoins have unquestionably changed the cryptocurrency scene and how they are a disruptive force in traditional banking.

Google Records Increasing Activity in Memecoin Search

This development outperformed the cryptocurrency market capitalization of many cryptocurrency markets amid the involvement of institutional investors. One such example is the Decentralized Physical Infrastructure Networks (DePIN), whose investment has amounted to $29.98 billion.

The zero-knowledge sector accounts for  $18 billion, Real World Assets (RWA) recorded $8.5 billion, while layer 2 sits at $32.39 billion. Google search analysis also noted that the keyword “memecoins” tops the most searched words globally.

It is still in doubt if memecoins will continue to rule the cryptocurrency narrative in the future. CoinGecko SATs stated that the memecoin sector is currently worth $60.93 billion, representing 2.32% of the gross market capitalization of the entire cryptocurrency space. This development represents a 176.9% rise in quarter-on-quarter.

Data from the Google Trends tracker revealed that memecoin was the most searched keyword in March, ranking 88 on the popularity scale. The report also placed it as the second most searched keyword from the first week of November 2023, with a search score of 100th in the list.

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Jesse Rosenbalm
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Jesse Rosenbalm

Jesse Rosenbalm stands out in the crypto journalism realm, seamlessly blending intricate blockchain concepts with accessible prose. Known for his deep dives and accurate forecasting, Jesse's articles are a must-read for both novices and experts. As crypto trends shift, his insightful writings remain a beacon in the digital currency space.

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