Quick Take:

• CoinMarketCap logs 138 meme coins in April, per Crypto Coryo.
• PEPE and WIF attract fast money.
• Meme coin market now rivals JPMorgan and Tesla in combined market cap.

Meme coins are riding a wave of unprecedented demand, with a record-breaking 138 coins listed on CoinMarketCap in April, as reported by pseudonymous analyst Crypto Coryo. Despite Bitcoin’s rally faltering, the meme coin season remains in full swing.

This surge marks a substantial increase from April 2023’s tally of just 18 meme coins, highlighting the explosive growth of this niche market. However, the actual count could surpass the reported figure, as CoinMarketCap only represents approximately 10% of all tokens, according to Crypto Coryo.

Presently, CoinMarketCap lists over 2,200 meme coins, boasting a collective market capitalization exceeding $50 billion. This valuation nearly matches the market value of industry behemoths like JPMorgan and Tesla. This achievement is remarkable, considering meme coins are often criticized for their perceived lack of utility or genuine use case, often viewed merely as speculative assets.

Vitalik Buterin, the founder of Ethereum, the blockchain hosting numerous popular meme coins, outlined three primary reasons why individuals engage with meme coins: the potential for value appreciation, the perceived inclusivity of participation, and the sheer enjoyment derived from them.

Arthur Hayes, co-founder of BitMEX and current CIO at Maelstrom, offers a nuanced perspective, emphasizing meme coins’ potential to attract attention and talent to the blockchain space, thus fostering ecosystem growth.

Solana, a programmable blockchain renowned for its cost-effectiveness and speed compared to Ethereum, has emerged as a preferred platform for meme coin projects. This trend gained momentum in late 2023, culminating in record network activity on Solana during the first quarter of this year. The surge in meme coin activity on Solana propelled the price of SOL above $200 for the first time since November 2021.

According to Crypto Coryo, the migration of “degen” (degenerate) activity from Ethereum to Solana is driven by exorbitant gas fees on the former. Solana has consequently positioned itself as the new frontier for meme coins, hosting projects like Bonk and Bald, underscoring its growing prominence in the crypto landscape.