Solana co-founder Anatoly Yakovenko has pointed out that memecoins have repeatedly drained the momentum out of every crypto cycle that came before them.
According to him, they dominate the market, leaving other projects struggling for attention. Yakovenko believes the cycles are 90% meme and only 10% actual product.
This current cycle is no different. Memecoins today have taken over the meme energy that once fueled cycles like DeFi summer, leaving products to stand purely on their value.
If true, he thinks it’s good for the industry. No more hiding behind hype. Projects must prove themselves.
This cycle’s meme coin market is wild, driven by influencers, celebrities, and hype. It’s chaotic and volatile, but that’s the game now.
The meme coin market, as of press time, has seen massive growth, reaching a total capitalization of $44.01 billion.
The daily trading volume is also huge, with around $4.63 billion moving through memecoins every 24 hours. Dogecoin (DOGE), Shiba Inu (SHIB), and Pepe (PEPE) are the top 3 largest ones.
DOGE alone boasts a market cap of $16.9 billion, with SHIB trailing at $9.83 billion, and newcomer PEPE sitting at $4.52 billion.
Memecoins have always been about hype, and this year, celebrity involvement has thrown gasoline on the fire. Celebrities like Caitlyn Jenner, Iggy Azalea, and Nigerian artist Davido have launched their own tokens.
JENNER launched on May 26, hitting a $40 million market cap in just a few hours. Right now, it is down 68.4% from its all-time high.
Iggy Azalea’s MOTHER also saw big gains in the first few ays after launch, but the value tanked as rumors of scams and controversies started going around.
Meanwhile, shortly after the launch of DAVIDO, it was accused of being pre-mined, with insiders dumping it soon after. It was a blatant pump-and-dump.
Yakovenko’s theory that memecoins have sucked the life out of other cycles seems spot-on. Solana-based memecoins are now major players in this current cycle, outperforming even Ethereum-based alternatives.