Memecoins are now stealing the spotlight and pulling attention and funds away from tech-based altcoins. Pump.fun co-founder Alon Cohen believes most altcoins perform a similar role as memecoins but carry greater risks, have venture capital manipulation, and have very little adoption in the real world.
Altcoin Crash & Market Oversaturation
Altcoins reached a peak of $788 billion in March 2024 but then crashed in April. As Cohen observes, the confidence of retail investors in altcoins was lost, and they started investing in memecoins. With thousands of projects going on simultaneously, only a few gain traction.
Was It the Memecoins' Fault?
Some hold memecoins responsible for the crash. However, institutional support is a way bigger player, according to Animoca Brands' Yat Siu. Institutional investors in altcoins used open-market purchases for better performance in 2024.
Rebound in November 2024
Altcoins rebounded during November with renewed optimism in crypto spaces after the re-election of Trump. Memecoins continued being on a roll; however, some altcoins saw investors regain confidence in them.
Memecoins dominate retail speculation; the long-term issue depends on the support extended by institutions. Investors need to separate hype from actual innovation. What's your take—are memecoins a problem or just part of the game?
