Meme coins are here to stay. As of October 9, 2024, the total market cap of all meme coin trading stood at over $53 billion.
All meme coins were worth less than $25 billion early this year.
The industry has grown by leaps and bounds in roughly ten months, more than doubling.
The surge points to one thing: Demand and retail interest.
It only makes sense: meme coins are open to retail traders, considering the tight securities laws, especially in the United States, and the absence of a market like Grayscale’s offering, which allows exposure to these high-flying tokens.
Meme Coins To Hit $1 Trillion In Market Cap
Earlier, during the Token 2049 conference in Singapore, one analyst issued a bold prediction.
In the coming months, the total market cap of all meme coin trading will soar to at least $1 trillion. This mega valuation is all because of what these meme coins present and the surging interest from retail traders.
What’s more?
With all meme coins set to dominate the industry, the analyst added that at least two such projects will boast a market cap of over $100 billion. As valuation rises, other quality meme coins will expand. At that time, over ten meme coins will be valued at at least $10 billion.
Looking at Coingecko , only two meme coins, Shiba Inu and Dogecoin, currently command a market cap exceeding $10 billion.
( Source )
For their valuation to soar to over $100 billion, SHIB must at least 10X from spot rates.
If this prediction comes to pass, SHIB and Dogecoin will likely continue expanding in the coming years to dominate the crypto market scene.
Other “entertainment” tokens that traders should watch going forward will be Pepe, Bonk, Floki, and the top 20 tokens commanding over $100 million in market cap.
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The analyst said these tokens are attractive because they are simple to understand. Their valuation, in turn, is driven by the hype around their respective popularity and adoption.
At the same time, over the years, these types of coins have proven to be more liquid than some altcoins and top NFTs. Accordingly, traders who get exposure can get in faster and exit.
Due to the liquidity and volatility, it is easy to see why some meme coin communities have created a loyal base and diamond hands who will hold their tokens through thick and thin. This behavior can be seen in the Dogecoin and Shiba Inu communities.
Additionally, the absence of VCs that can, at any time, dump on retailers is a massive advantage for traders. Because of the lack of oversupply and unlocks, like, say, in Avalanche, Arbitrum, Aptos, and even Worldcoin , holders are more confident.
Although some of these tokens have proven to be scams and rug pulls, most are generally safe. The analyst said there are no complex smart contracts that lead to vulnerabilities.
Aligning with this bright future, Pepe Unchained is raising capital and plans to build an Ethereum layer-2 dedicated to meme coins. So far, the PEPU presale is ongoing, raising over $18 million.
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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
