Memecoins have recently experienced a significant surge, with trading volume increasing fivefold to reach $16 billion, capturing the attention of retail investors. In contrast, Bitcoin 
$76,252 and other major cryptocurrencies are on a slower upward trend. While institutional investors gravitate towards larger cryptocurrencies, retail investors are predominantly focusing on memecoins.
Memecoins Challenge the NFT Market
Alvin Kan, the Operations Director of Bitget Wallet, stated that the rising interest in memecoins is negatively impacting the NFT market. He highlighted a substantial decline in NFT trading volume since February 2023. According to him, NFT projects, particularly those led by major players like Yuga Labs, are experiencing a liquidity crisis.
Kan remarked, “The NFT market is currently facing a serious stagnation. Many projects are trying to attract users by developing new strategies. The NFT sector must regain its momentum.”
Memecoins Outpace Altcoins
In 2024, memecoins are rapidly climbing, with their trading volume rising from $3 billion in 2023 to $16 billion. Kaiko data indicates that the market share of memecoins has increased from 7% to a range of 25-30%.
Experts note that the perception of memecoins as fairer has played a significant role in this rise. Investors find memecoins to be more transparent and equitable compared to VC-backed tokens, as memecoins typically have fully circulating supplies, leading to organic price formations.
Additionally, speculations about a potential revival in the NFT market arise due to Yuga Labs launching the ApeChain blockchain and APE coin gaining over 100% in value.
To overcome the liquidity crisis, the NFT market needs new strategies and a regained momentum. Furthermore, the rise in memecoin trading volume has led to a significant stake in the altcoin market.
Ultimately, the trading volume of memecoins has reached $16 billion, while the NFT market continues to struggle with a liquidity crisis.
