💰 How could memecoins have amassed over $43 Billion of value?
“People laugh about memecoins, but if you do the work, there's actually something more going on there underneath the surface.”
As 1RoundTable Partners (1RT) and 10T Holdings Founder Dan Tapiero recently explained on Scott Melker's Wolf of All Streets podcast, such criticism doesn't consider the demographics that memecoins are reaching and what lies at the core of their popularity.
"I always say the kids like to have fun," Dan said. "Memecoins are part of the value. This is how people are having fun today… If I were 20, I'd be all over it. It's about putting a value on one's attention and time. They are not invalid."
Memecoins have witnessed an extraordinary rally this year, far and away capturing the greatest mindshare across top crypto narratives.
As CoinMarketCap's 1H 2024 report shows, they're also attracting emerging markets with a rising number of young and increasingly affluent consumers:
🇧🇷 Brazil, 🇮🇳 India, and 🇮🇩 Indonesia: CMC market share increased from 18.72% to 23% due to the popularity of memecoins in those markets.
🇺🇸 US, 🇩🇪 Germany, 🇬🇧 UK, and 🇫🇷 France: CMC market share declined from 36.58% to 29.81% as consumers in those regions are more focused on Bitcoin and Ethereum.
Memecoins are also bringing some unexpected benefits and exposure to the space overall as the process of launching a token is being demystified in real-time. Anyone can launch their own memecoin inexpensively with a few clicks. This encourages newcomers to experiment, dabble with blockchain technology, and see how it works.
The concerns about volatility within memecoins and the prospect of crashing token prices hurting everyday consumers are well-founded and well-documented.
So while emphasizing how important it is to trade responsibly, don't forget to reflect on why memecoins have managed to captivate the market so quickly. There could be lessons to learn for the crypto projects that want some momentum of their own.
Why? Because the value of a token can be immaterial. Sometimes commanding people's attention, earning a part of their hard-won leisure time, injecting a little fun into their lives, and building a community they can be a part of are all seemingly immaterial factors that accrue value nonetheless.
