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During this cycle, Memecoins, especially based on Solana, became the leading narrative of the crypto market. These tokens have passed the attention of investors and overshadowed the performance of many major altcoins.
Some experts weigh in on the market’s performance over the past year, discussing what makes meme-based tokens the dominant narrative of the cycle, and what may be next for the industry.
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The Value of Solana’s ‘Interjective Culture’ Coins
Qiao Wang, co-founder of Alliance DAO, shared his thoughts on the market dynamics that led to the high volume of each round. In X’s post, you noted how “there is a sales opportunity to outpace the experts” every cycle.
Alpha is for sales to get involved at a time when there is too much risk in the job for professionals to get involved.
Retail investors outperformed professionals during the first cycle with “easy” Bitcoin, Wang explained. In the second cycle, investors took advantage of the Ethereum narrative, while Decentralized Currencies (DeFi) and Non-Fungible Tokens (NFTs) became the leading trading opportunities in the third cycle.
Solana and the “coins of intersubjective culture,” as Wang calls memecoins, carry the cycle. The popularity of meme-based tokens has often been criticized for their lack of utility and “substance,” often resulting in “fast money” for their creators and few early adopters.
However, Wang seems to suggest that the value of these symbols depends on the shared culture behind them, a debate experts and industry figures have discussed before.
As reported by NewsBTC, crypto traders Ansem and Kel debated the value of memecoins in an unedited podcast. In the interview, traders explained that there is a benefit to memes and culture on the Internet, which makes comparisons with other altcoins “useless.”
They added that the crypto community is “very Internet-centric” as its members understand the financial aspect and know a lot about Internet culture. As such, crypto investors saw an opportunity to “finance” the meme risk in the industry.
Additionally, they pointed out that the “shared experience of relatedness” is another important factor driving the craze for meme-based tokens, as seen in Solana-based memecoin communities like dogwifhat (WIF) and Popcat (POPCAT).
Memecoins ‘Absorbed’ Market Power
On Sunday, Chris Burniske, the founder of Placeholder, also took X to examine the confusion of memecoins. To him, “Memecoins tendency to launch is all you need to notice to know that it will be bigger than we expect in the future expansion.”
In the post, Burniske stated that he considers the “trend clear” as the cultural relevance of NFT clusters in 2021 will be surpassed by some of the memecoin sentiments of this cycle.
It is worth noting that, on October 7, the market capitalization of Solana memecoins exceeded $ 10 billion, as SolanaFloor reported.
Solana’s founder Anatoly Yakovenko responded to Burniske, sharing his opinion on why memecoins have become such a hot topic. Yakovenko observes that in previous cycles “there were 90% memes and 10% products.”
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However, he suggests that today, this sector has controlled the power that drives different narratives between other cycles: “My opinion is that memecoins today have completely taken over the energy of the meme that drives other cycles, like the summer of DeFi,” said the founder of Solana.
Based on it, Yakovenko believes that products should “only make it worth it” now, which would be a good thing for the wider industry.
As of this writing, Solana (SOL) is trading at $151, a 4% surge in the last 24 hours.
Featured image from Unsplash.com, Chart from TradingView.com