Galaxy Digital’s Mike Novogratz confident memecoins are “cornerstone of the crypto economy”

    Galaxy Digital CEO trusts that themed digital coins, such as Dogecoin, Shiba Inu, PepeCoin, and Dogwifhat, vital in ensuring stability in the cryptocurrency sector.

    Memecoins aren’t going anywhere

    The executive emphasized that meme assets are vital in the crypto world, describing the class as the cornerstone of the digital economy.

    Memecoins – whether you’re a fan or not – have become a cornerstone of the crypto economy… In today’s market, they’re one of the most powerful narratives out there. At @galaxyhq we estimate that memecoins on permissionless blockchains have an aggregate market cap of more than…

    — Mike Novogratz (@novogratz) June 12, 2024

    Novogratz highlighted how themed tokens dominate financial trends as among “the most powerful narratives.”

    He added that meme tokens on permissionless blockchains boast over $60 billion in market capitalization.

    Memecoins grab investor interest amid market volatility

    Themed coins (despite their whimsical and humorous nature) have seen increased attention from investors and traders.

    Further, meme cryptos have seen massive accumulation by whale investors. For instance, large-scale traders acquired 200 million $DOGE assets within five days.

    🚨 🚨 200,000,000 #DOGE (28,790,166 USD) transferred from #Robinhood to unknown wallet

    — Whale Alert (@whale_alert) June 10, 2024

    Also, PepeCoin has created a buzz with its over 6,000% increase over the previous year.

    Moreover, activities like the 445 billion token purchase by Nascent Ventures indicate more price surges for the token.

    Furthermore, another trader bought 600 billion SHIB assets from Robinhood.

    🚨 600,000,000,000 #SHIB (13,713,299 USD) transferred from #Robinhood to unknown wallet

    — Shiba Inu News (@ShibalnuNews) June 11, 2024

    Massive purchases by market-moving players show confidence in the asset’s future potential

    On-chain analyst Will Clemente believes market players prefer meme tokens due to their impressive upside potential.

    Will Clemente (@WClementeIII) used the bear market to level up.

    He joined me to talk about:

    – Bitcoin bull market
    – ETH vs SOL
    – Memecoins
    – ETFs
    – Portfolio construction
    – Coinbase thesis

    This is packed with alpha. Full episode on X.


    — Pomp 🌪 (@APompliano) June 11, 2024

    Indeed, savvy investors have earned enormous returns as assets such as PepeCoin outperformed the markets to hit all-time highs.

    Clemente added that meme cryptos attract traders due to their simplicity.

    While most players see value in altcoins like XRP and Cardano, their complexity and imprecise fundamentals seem challenging to many.

    The analyst explained that retail traders have low chances of earning a 15X profit on larger cap alts. Nonetheless, meme coins have a higher potential of netting such returns.

    The profitability potential drives the massive adoption of themed cryptocurrencies.

    Further, most individuals migrate to meme coins to avoid stiff competition. Clemente used poker tables as an example.

    New players will avoid the table with experienced and high stakers and gravitate to the one accommodating newbies.

    That has made meme tokens the market gateway for entry-level crypto investors.

    Market outlook

    The cryptocurrency sector displayed recoveries following the latest economic news from the United States.

    Bitcoin gained 1.46% over the past day to $68.19K, propelling the overall crypto market capitalization to $2.48 trillion – a 2.55% 24-hour uptick.

    Meme assets recorded the most gains within the past day, with their market cap increasing by 4.75% to surpass $56.74 billion.

    Dogecoin, Shiba Inu, and PEPE surged over 6%, 3%, and 7% over the previous 24 hours.

    Meanwhile, Dog Rune ($DOG) maintained its robust momentum, jumping 25% within the past day to hover near $0.007193 at press time.

    The post Galaxy Digital’s Mike Novogratz confident memecoins are “cornerstone of the crypto economy” appeared first on Invezz

    Stay in the Loop

    Get the daily email from CryptoNews that makes reading the news actually enjoyable. Join our mailing list to stay in the loop to stay informed, for free.

    Latest stories

    - Advertisement - spot_img

    You might also like...