Google search volumes for the term “Bitcoin” have plummeted to their lowest level in a year during the week of October 12, 2024. On a scale of 100, global interest in the term fell to just 33 by the week’s end. In contrast, the search volume for “memecoins” reached 77 out of 100 during the same timeframe, although it has yet to surpass its previous all-time high of 100, which was achieved in late October 2023.
Memecoin Popularity
Ki Young Ju, the CEO and founder of CryptoQuant, believes that the search volume for memecoins will likely reclaim its previous all-time high by the end of October 2024, given the sustained market interest in these digital assets. Memecoins have outperformed all other sectors in the cryptocurrency space throughout 2024 and show no indications of slowing down as the year progresses.
- Search Volume Data:
- Bitcoin: 33/100 (1-year low)
- Memecoins: 77/100 (below all-time high of 100)
According to Step Finance, a staggering 491,000 new tokens have been created on the Solana network since September 12, 2024. This explosion of activity underscores the growing enthusiasm around memecoins.
On October 9, Solana Floor reported that nearly 20,000 new tokens were launched on the Solana network within just 24 hours, with most of these new token mints classified as memecoins. The Solana-focused news outlet also highlighted that memecoins on the Solana network now boast a combined market capitalization exceeding $10 billion, alongside a 24-hour trading volume of approximately $2.3 billion as of October 12.
| Metric | Value |
|---|---|
| New Tokens Created (Solana) | 491,000 |
| Market Cap of Memecoins | Over $10 billion |
| 24-hour Trading Volume | Roughly $2.3 billion |
| New Tokens in 24 hours | Nearly 20,000 |
Platforms like Pump.Fun have been instrumental in fueling the memecoin craze on Solana. These platforms offer streamlined user interfaces, low transaction fees, and access to quick liquidity on decentralized exchanges such as Raydium, enabling nearly anyone to create new tokens.
Earlier in 2024, industry executive Justin Sun announced the launch of the SunPump platform, which facilitates memecoin creation on the Tron network. This platform is similar to the Pump.Fun platform on Solana and has seen significant activity since its inception. According to data from Dune Analytics, around 90,000 memecoins have been created on the SunPump platform since its launch in August.
- SunPump Platform Metrics:
- Tokens Created: 90,000
- Launch Date: August 2024
Risks Associated with Trading Memecoins
While the excitement surrounding memecoins continues to grow, trading these assets carries substantial risks. This volatility and the speculative nature of memecoins have drawn criticism from investors, industry professionals, and prominent business figures. Investor Mark Cuban recently voiced his concerns, stating, “Every meme coin is a rug pull in the works,” warning the public against engaging with these highly speculative assets.
Critics argue that the allure of quick profits often overshadows the inherent risks associated with trading memecoins. Many investors are lured by the potential for high returns, only to find themselves facing losses as the market becomes increasingly saturated with new and often dubious tokens. The rapid influx of new tokens makes it difficult for investors to discern which ones hold genuine value and which are likely to collapse.
The contrasting trends in search volume between Bitcoin and memecoins reflect broader market dynamics within the cryptocurrency space. While Bitcoin appears to be losing traction among retail investors, the memecoin sector is thriving, characterized by significant token creation and heightened interest.
As platforms like Solana and Tron facilitate the rapid development of memecoins, investors must remain vigilant and informed about the risks associated with these assets. While the market may be exciting and full of opportunities, it is crucial to approach trading memecoins with caution, considering the potential for significant financial loss.
As the cryptocurrency landscape continues to evolve, the behaviors of investors and market participants will play a critical role in shaping the future of both established cryptocurrencies and emerging digital assets.
Featured image credit: upklyak via Freepik
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