Meme Tokens Show Profitability up to 1800% in 2024

Analytical Company Reports: Meme Tokens Continue to Excel in 2024

Analytical company Kaiko has reported that meme tokens continue to show impressive returns in 2024, despite a recent correction in the cryptocurrency market. According to Kaiko’s latest weekly report, meme token returns since the beginning of the year range from 80% to a staggering 1800%, significantly outperforming most other crypto assets. The trading volume of these tokens during the same period has increased by 200%, reaching $11 billion.

Current Trends and Speculation

Analysts at Kaiko note that the current situation is markedly different from historical trends. In the past, during market downturns, investors tended to move funds into more stable and quality assets, leading to a decrease in meme token returns. However, these tokens are now staying in the spotlight due to their ability to attract a wide range of investors and adapt to new trends.

The Volatility and Appeal of Meme Tokens

Meme tokens typically do not have specific functions or use cases, and their valuation often relies on internet popularity and speculative expectations, making them highly volatile. In the current situation, the high returns on meme tokens are attributed to their accessibility to investors and active involvement in popular trends.

The Role of Solana Blockchain

Furthermore, there is significant use of leverage in the meme token segment, which is also tied to their speculative nature. Against the backdrop of increased interest in meme tokens, the Solana blockchain set a record for throughput, reaching 1054 transactions per second, and became one of the key beneficiaries of the growing popularity of meme tokens.

Solana’s Potential Growth

Four out of the top ten meme tokens by market capitalization are based on Solana: Dogwifhat (WIF), Bonk (BONK), Book of Meme (BOME), and Popcat (POPCAT). Experts at Syncracy Capital predict that with the rise in popularity of meme tokens, Solana’s native token (SOL) could reach $200 by the end of May and potentially surpass its all-time high above $260.