Memecoins have become the talk of the crypto market, seeing attention from users across respective blockchains. The tokens have also been attracting new users seeking the next big asset in the crypto sector. However, analytics platform IntoTheBlock has revealed that the number of wallet addresses holding memecoins under 30 days hit a new high in March.
Memecoins market experiences an influx of new users
According to the platform, this increase is evidence that a lot of new traders entered the memecoins market in March. This huge number can also be credited for the sharp rise in the value of these assets in the first quarter of 2024. In an April 3 post, CoinGecko revealed that the memecoin market was by far the best-performing market in the first quarter of the year.
Memecoins enjoyed a bullish first quarter, with the average returns among top coins by market cap in the sector reaching 1,312%. According to the CoinGecko data, memecoins launched in March climbed up to the top 10 tokens by market cap. The percentages were aided by the wild rises of tokens like Dogwifhat (WIF) and Book of Meme (BOME). Several stories about traders cashing out on the huge gains in the market have also played a role in seducing new users into the space.
Success stories and challenges in the memecoins sector
A crypto user became popular in the memecoin community after a Solana token SILLY, which he bought for $62 saw a huge rise in its price to net the trader $2 million in December. The coin, Silly Dragon, was created to make fun of Solana co-founder Anatoly Yakovenko’s Halloween costume. Another recent story is that of a user who made two $2 million hours after purchasing a token for $13,000. A user also bought memecoin Donotfomeow (MEOW), which made an interesting surge of 15,700%.
While the memecoin sector has been able to help users recoup gains, there have been some negative stories about the sector. Some traders fall prey to scammers while others impatiently sell off their tokens, losing some of their capital in the process. An interesting story of the project CONDOM based on Solana where the team behind the token rug pulled investors. The team’s X account went dark, stealing about $1 million worth of Solana tokens.
