By now, the market is showing a recovery

Capitalization of Solana and Base-based meme tokens fell by 12% and 19% amid BTC depreciation

03.04.2024 - 10:12

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3 min

What’s new? The total market capitalization of meme tokens in the Solana blockchain and the Layer 2 (L2) Base network based on the Ethereum blockchain showed a daily drop of 12% and 19%, respectively. The decline in coin rates occurred simultaneously with a sharp drop in the price of bitcoin. Thus, on April 2, it fell by 7% and reached $65 000, but by the time of writing the news began to recover.

Material by Cointelegraph

What else is known? At the moment, the daily drop in the capitalization of the leading meme token dogwifhat (WIF) in the Solana network was 9%. In addition, more than $2 million in leveraged positions were liquidated overnight, of which $1,21 million were long and $824 760 were short, according to CoinGlass data. That said, WIF still accounts for nearly half of the meme token market share on Solana.

On the Base network, the native token of the Degen Chain (DEGEN) network used by the Farcaster community of Web 3.0 social network users suffered the most. Its market capitalization fell by 26,14% to $436,5 million.

By the time the news was written, the daily drop in meme token capitalization on Solana was 2,7%, and the figure recovered to the $8,7 billion mark. Base saw a 2% increase to $1,7 billion. BTC added 0,45% and is trading at $66 417 on Binance.

Crypto analyst and founder of Quantum Economics Mati Greenspan in a conversation with Cointelegraph noted that meme tokens outperform bitcoin when it is growing, and vice versa: when BTC falls, their value declines even more.

On April 2, crypto analyst and Crypto Banter podcast host Ran Neuner said in an X post that the meme token market is close to oversaturation.

Source: Twitter.com

Messari earlier called meme tokens a “Trojan horse” of cryptocurrency adoption. Platform analyst Maartje Bus noted that such assets attract newcomers to the blockchain. A similar statement was made by Arthur Hayes, founder of the BitMEX exchange. According to him, networks that support meme token culture will have value.

Memeland team launches the Memenet blockchain to issue meme tokens

Memeland team launches the Memenet blockchain to issue meme tokens

The MEME token will be used to pay for transactions on the network

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In general, meme tokens are booming in the crypto space, with Solana and Base accounting for most of that activity. Against this backdrop, other blockchain teams are also launching initiatives to attract meme token developers to their ecosystems.

For example, the blockchain team at leading crypto exchange Binance formed a prize fund for meme token creators. The developer whose meme token on BNB Chain demonstrates a trading volume of over $30 billion will be rewarded with $1 million.

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