The popularity of memecoins increased substantially between April and May of this year.
According to cryptocurrency price tracking platform CoinMarketCap, memecoins were the most popular and fastest-growing sector recorded in the first half of the year.
In the report "According to CMC: Crypto Market Analysis H1 2023”, CoinMarketCap analysts highlighted that memecoins became the most notable sector of the crypto space thanks to the speculative “memecoin season” led by PEPE, which quickly rose to prominence among crypto investors due to a high-profile purchase. The memecoin captivated crypto Twitter communities and became popular among investors, moving over $928 million in trading volume per day in early May.
PEPE was one of the memecoins that managed to enter the Top 100 of the cryptocurrencies with the largest capitalization along with FLOKI and, although its price has fallen by almost 65% since its historical maximum in May, it still remains within the Top 100.
The acceptance and boom that memecoins have had this 2023 have made it the most popular sector in the cryptocurrency industry, Above DeFi, NFTs and the Metaverse.
Source: CoinMarketCap
More than $16.000 million in capitalization
According to data from CoinMarketCap, the market capitalization of memecoins exceeds $ 16.400 million dollars, at the time of writing this article.
This sector of the crypto industry is led by Dogecoin (DOGE), the original memecoin inspired by the Shiba Inu dog breed, which was created as a joke on Bitcoin and cryptocurrencies. However, the support of big personalities such as Elon Musk, sparked the interest of investors and, today, DOGE has become the ninth most capitalized cryptocurrency in the market, with a value of more than $9.900 billion dollars.
The second most important memecoin in the crypto industry is Shiba Inu (SHIB), also known by the nickname “Dogecoin Killer”. This memecoin has managed to attract a large number of investors over the last 3 years and currently has one of the strongest and most active communities in the sector.
Source: CoinMarketCap
The CoinMarketCap platform records 1.161 memecoins, with the most capitalized being DOGE and SHIB, which represent 88,6% of the total market value currently held by these digital assets.
Loans, derivatives and data storage
In addition to memecoins, another sector of the crypto industry that had notable growth in the first half of 2023 was the decentralized finance (DeFi) ecosystem. In fact, according to CoinMarketCap, this crypto sector has maintained sustained growth since January, which is why it ranks second among the most active sectors of the industry.
Most of the activity that occurred in DeFi in the first half came from decentralized lending protocols, which experienced a 149% growth since the beginning of the year, followed by derivatives, with a 75% growth in the same period, and data storage (86%) and interoperability (58%) protocols.
On the other hand, the NFT sector was quite active during the first three months of the year, especially due to the activity recorded on Blur, which became one of the leading platforms in the non-fungible token sector thanks to the competitive advantages it provides to users and traders of these digital assets. However, interest in NFTs began to wane in the second quarter.
According to CoinMarketCap analysts, investors are increasingly being drawn to exchange-traded investment products such as ETFs, thanks to institutional entry from giants such as the world’s largest asset manager BlackRock, which is seeking SEC approval to launch a Bitcoin spot ETF in the United States.
Analysts at the platform noted that BlackRock's filing, if approved by the SEC, could unlock the US market and push Bitcoin's price beyond its all-time high.
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