Misspelled celebrity memecoins on Solana are gaining popularity
Misspelled celebrity memecoins based on the Solana blockchain are experiencing a surge in popularity. These tokens, with names like Andwu Tet (based on Andrew Tate) and Jeo Boden (based on Joe Biden), have seen significant price increases in a short period of time.
The overall memecoin market has been performing well, with tokens like dogwifhat, pepe, and bonk on Ethereum seeing substantial gains. Now, the focus has shifted to celebrity tokens with funny names on the Solana blockchain.
Jeo Boden, for example, reached a market cap of $49 million in just three days, with its token price increasing by around 12,000%. This surge in popularity comes ahead of Joe Bidenโs State of the Union Address on March 7.
Low liquidity and Solanaโs low transaction fees
While some traders may be posting large gains on paper from these memecoins, there is limited liquidity available to realize these profits. For instance, Boden has only around $250,000 of liquidity, and Danold Tromp has just $75,000.
Nansen Data Journalist Martin Lee attributes the buying activity to Solanaโs low transaction fees. Traders are attracted to Solanaโs low cost chain, which provides a more favorable environment for those willing to take higher risks. The ability to place small bets on highly speculative assets is a popular strategy when gas fees are minimal.
Furthermore, as the prices of major cryptocurrencies like Bitcoin, Ether, and SOL rebound, traders are seeking even greater gains by moving further out on the risk curve.
Decline in memecoin market cap
Despite the recent interest in memecoins on Solana and the previous weeks of rising prices, the overall memecoin market cap has actually decreased by over 4% in the past 24 hours. It now stands at a total value of $54.4 billion. In contrast, the global cryptocurrency market cap has increased by 0.7% to reach $2.64 trillion.
Bitcoin dominance currently sits at 49.8%, while Ether dominance is at 17.2%. Bitcoin has experienced a modest 5% increase in the past 24 hours and is currently trading at $67,004.
The GM 30 Index, which represents a selection of the top 30 cryptocurrencies, has increased by 2.67% to reach a value of 139.37 during the same period.
Hot Take: Memecoins continue to captivate traders
Despite the decline in memecoin market cap, misspelled celebrity memecoins on Solana are captivating traders with their potential for rapid price increases. These tokens have gained popularity due to their association with well-known figures like Andrew Tate and Joe Biden.
However, itโs important to note that liquidity for these memecoins is limited, which may impact tradersโ ability to realize their gains. The low transaction fees on Solana have attracted traders who are willing to take higher risks for potentially greater rewards.
As the crypto market continues to evolve and major cryptocurrencies rebound in price, traders are seeking opportunities for even greater profits by exploring alternative assets like memecoins.
Theon Barrett shines as a distinguished crypto analyst, accomplished researcher, and skilled editor, making significant strides in the field of cryptocurrency. With an astute analytical approach, Theon brings clarity to intricate crypto landscapes, offering insights that resonate with a broad audience. His research prowess goes hand in hand with his editorial finesse, allowing him to distill complex information into accessible formats.