Mike Novogratz Says Meme Coins Are Good for Economy

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As a researcher with a background in cryptocurrencies and a particular interest in meme coins, I find Mike Novogratz’s perspective on the growing relevance of this asset class truly intriguing. Having followed the development of Dogecoin back in 2013, it is remarkable to witness how far these digital assets have come since then.

In 2013, when Dogecoin (DOGE) first appeared on the scene, it was hardly anticipated that this cryptocurrency would give rise to an entire category of assets, now referred to as meme coins. Dogecoin paved the way for a long list of successors such as Shiba Inu (SHIB), Floki, PEPE, and countless other related tokens. According to Mike Novogratz, these assets have become integrated into the economy and are here to stay.

Growing meme coin relevance

Mike Novogratz’s perspective on meme coins signifies a significant transformation in the crypto market. According to the Galaxy Digital head, meme coins now play a pivotal role in the crypto economy.

My father-in-law and numerous others are amassing wealth by putting money into meme coins. According to him, the process involves evaluating a potential investment and determining if it has the capacity to provoke laughter among investors.

As an analyst at Galaxy HQ, I’ve observed a significant shift in the crypto economy with memecoins taking center stage. Despite personal biases, these digital assets have undeniably become one of the most influential narratives in today’s market. Based on our estimates, memecoins built on permissionless blockchains collectively hold a market capitalization exceeding… (insert specific number here).

— Mike Novogratz (@novogratz) June 12, 2024

Billionaire investor Novogratz highlighted the Solana-based meme coin, Dogwifhat (WIF), which has grown its market capitalization beyond $3 billion. According to Novogratz and Galaxy Digital’s assessment, the meme coin sector is worth approximately $60 billion, with Dogecoin, Shiba Inu, and PEPE being the leading players.

Ongoing transformation

Meme coins, contrary to being overstated as the foundation of the crypto economy, are actually transitioning from being merely amusing tokens to coins that offer distinct functionalities. The bulk of meme coins are currently undergoing this significant shift.

Shiba Inu stands out as an illustrative case. Over the recent past, it has integrated numerous functions, qualifying it as a viable payment option. It comes equipped with its unique Domain Name Service, and moreover, boasts its own layer-2 scaling solution named Shibarium.

In addition to Shiba Inu, Floki has been rapidly advancing, marked by the introduction of TokenFi last year which positions it to capture a significant portion of the tokenization market. The landscape of meme coins has solidified to the point where a systemic failure across all ecosystems appears unlikely.

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2024-06-13 12:53