- Memecoins have recently reignited a fresh frenzy.
- The crypto market is slowly rebounding from its low point last week.
- Market participants have questioned the value of memecoins.
The crypto market’s underperformance in recent weeks sent a cold wave through the industry, marked by waning investor interest and a south-way slump in asset prices. However, in a reversal of fortunes, the outgoing week has seen an uptick trend as most assets regain their upward momentum and tick new price highs.
But, taking the spotlight are not the giants of the market.
Memecoin Surge Returns
According to CoinGecko data on Thursday, May 16, 2024, the entire meme coin market capitalization is $58.13 billion, marking a 10% increase on the last day.
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The surging value coincides with the upticks recorded across the top players in the memecoin sector over the past week. Among the top performers is Pepe (PEPE), which has notched a total of 24% over the last seven days. Following suit, Floki coin (FLOKI) has recorded a 19.3% increase.
The performances of PEPE and FLOKI outshine the modest upticks witnessed among market giants such as Bitcoin (BTC) and Ethereum (ETH), which have experienced approximately 5% and 3% gains within the same timeframe, respectively.
Others, including Shiba Inu (SHIB), Bonk (BONK), and Dogecoin (DOGE), have also maintained upward momentum, each experiencing gains of 8.7%, 3.6%, and 2.6%.
Despite their impressive performance, concerns persist regarding the utility of these coins within the industry, often casting doubts on their position in the industry.
Are Memecoins a โRisky Casino?โ
According to Andreessen Horowitz (a16z) CTO Eddy Lazzarin, the meme coin asset class is altering the perception of the crypto industry.
Expressing concern over their impact on the industry’s integrity and long-term vision, Lazzarin asserted that meme coins had impacted the adoption of the crypto industry, regulatory standards, and developer retention, indicating that they have caused considerable frustration within the ecosystem.
"Memecoins alter how the public, regulators, and entrepreneurs see crypto. At best, it looks like a risky casino. Or a series of false promises masking a casino.โ
The managing partner of investment firm Compound also emphasized that the ongoing surge of meme coins is driving builders away, asserting the need to prioritize the crypto industry’s long-term goals.
Read more about the ongoing crypto market rebound:
Bitcoin Bull is Back: Why BTCโs 7% Jump Is Just the Beginning
Will China take a chance on crypto this time? Find out more:
Are Bitcoin ETFs Poised To Reshape Chinaโs No-Crypto Stance?
