Understanding the Growth of Meme Coins and Their Impact on Blockchain Addresses
The meme coin market is witnessing a rapid expansion, mirroring the increase in addresses on the underlying blockchains. According to Franklin Templeton’s Digital Assets team, there is a direct correlation between the surge in meme coin prices and the growth of users’ portfolios on the blockchains where these coins operate. Despite the lack of intrinsic value in crypto memes, traders view them as a way to speculate on the development of their underlying blockchain networks.
- Franklin Templeton highlights BONK, a meme coin built on Solana, as a prime example of this trend.
- In the fourth quarter of 2023, BONK experienced significant growth, with daily active user addresses on Solana increasing by 75% quarter over quarter.
The Meme Coin Market: Price Trends and Address Growth on Solana
Currently, the meme coin sector on platforms like CoinMarketCap shows a dominance of “green” trends in prices. Major cryptocurrencies like Dogecoin, Shiba Inu, and Pepe have seen price surges ranging from 7% to 50% over the past seven days. Additionally:
- Dogwifhat (WIF), Floki (FLOKI), and Bonk (BONK) have also experienced notable price pumps in recent days.
- WIF and BONK, both based on the Solana blockchain, have shown significant growth over the past month.
- WIF has surged by 627%, while BONK has seen a 166% increase in price.
- Solana’s monthly address growth has been impressive, with millions of new addresses being added each month.
Similar growth patterns are observed in Ethereum’s ecosystem, where meme coins like FLOKI, PEPE, and SHIB operate.
Analyzing Dogecoin’s Performance
While Bitcoin continued its upward trend, Dogecoin and Shiba Inu faced price corrections. Despite this, Dogecoin remains among the top cryptocurrencies:
- DOGE currently holds the ninth position in the overall crypto rankings with a market cap of $26.69 billion.
- Although BTC has surpassed its historical highs, DOGE is trading at $0.18, still below its all-time high of $0.58 reached in May 2021.
- During the recent crypto bull run, DOGE peaked at $0.20 on March 5th.
A Closing Perspective: The Future of Meme Coins and Blockchain Growth
The meme coin market continues to expand rapidly alongside blockchain address growth. Traders are increasingly using meme coins as speculative tools to bet on the development of underlying blockchain networks. As more users engage with these coins and their respective blockchains:
- We can expect further price volatility and market dynamics driven by meme coin activity.
- The relationship between meme coins and blockchain growth will likely become more intertwined as both sectors evolve.
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