Memecoins: The biggest interest of the year
Despite the fact that most memecoins are created for fun and have no real business model, they have dominated the trading volume on decentralised crypto exchanges this year. At times, they accounted for as much as 67% of the volume and are still leading with 22.7%. The success of pump.fun further highlights the popularity of memecoins. Since its launch on 14 January, pump.fun has increased its user base from 3 to 64,098. The platform has facilitated the creation of 1,094,856 tokens, generating revenues of 294,655 SOL or approximately $39,588,373 USD. Experienced crypto investors jumped on the Memecoin bandwagon early, as these coins can offer higher returns in a bull market due to their greater volatility compared to traditional cryptocurrencies.
The typical Memecoin cycle
Memecoin traders often follow a cycle that starts with a surge in bitcoin, then moves to altcoins and finally to memetokens. Many crypto analysts expect this rally to continue until the second or third quarter of 2025. This suggests that the memecoin supercycle is just beginning.
Stories of incredible wealth
The popularity of memecoins is also being driven by reports of investors becoming millionaires with small amounts of just a few hundred dollars or even less. What is particularly impressive is how quickly this can happen. Some investors have done it in months, others in minutes.
Exceptional returns
According to Dune, memecoins have delivered the highest returns of any crypto market narrative this year, averaging 292%. This is significantly higher than the second place LSD L2 sector at 183%. CoinGecko reports that in the particularly bullish first quarter, memecoins averaged returns of 1,313%, which is 4.6 times more than the next crypto sector. This mysterious new project could be perfectly positioned to benefit massively from the popularity and trading volume of memecoins in the current bull market.
New Layer-2 Memecoin from Pepe Unchained
The innovative Pepe Unchained project could benefit significantly from the high demand for Memecoins. Its goal is to unleash the potential of the famous frog Pepe by freeing him from the constraints of the Ethereum blockchain, allowing both Pepe and memecoins to reach their full potential. Currently, memecoins are negatively impacted by Ethereum's congestion issues, resulting in higher fees and slower transaction speeds as demand on the most widely used layer-1 for decentralised applications increases. Pepe Unchained aims to address this with a new scaling solution. This sidechain processes computations off-chain and only secures the data on Layer-1. This allows users, developers and investors to benefit from 100 times faster speeds, lower fees, greater flexibility and bridging capabilities.
Double staking returns and attractive investments
Another benefit is the double staking returns mentioned on the website. The presale is offering an impressive 6,742% return, which highlights its high attractiveness compared to other cryptocurrencies. Even if the pre-sale is slow, early investors could reap significant rewards. An investment of $1,000 could potentially return $68,420 in a year. However, the return diminishes as more coins are added to the stake pool's smart contract. Even a few days of staking can result in significant paper profits. Currently, a $1,000 investment earns $187.45 per day. After a week, it would accumulate less than $1,312 due to the continuously decreasing return, estimated at between $800 and $1,000 depending on demand.
Pepe Unchained: A promising Memecoin ecosystem
From April to mid-May alone, 640,000 new Memecoins were created on Solana and 370,000 on Ethereum. Tools now exist that allow anyone to launch their own memetoken on a blockchain within minutes, and with minimal initial capital. While this accessibility offers many benefits, it also opens the door for amateurs and fraudsters to enter the market, potentially diminishing the appeal of memecoins and cryptocurrencies. However, Pepe Unchained could address this issue. The project plans to further develop its ecosystem in its final phase. While no specific details have been provided, it is speculated that this could include a tokenised version of pump.fun. This could overcome significant challenges of memecoins by allowing new memetokens to be launched and traded quickly, easily, securely, transparently and fairly. This would benefit developers, investors and users alike.
Market Potential
If Pepe Unchained captures even a small portion of the $47.11 billion market capitalisation or the current $2.60 billion trading volume of memecoins, its ecosystem could benefit significantly. The memecoin Book of Meme, which specialises in Web3 culture and decentralised storage solutions, rose an impressive 3,719% from $0.00004959 to $0.01894 in just 19 days. Similarly, Pepe Unchained is comparable to the popular memecoin Shiba Inu, which also introduced a Layer-2 for its tokens and DeFi services, and has grown by 1,349,027% since its launch. Pepe Unchained could also potentially facilitate external memecoins. Within the first two days, Pepe Unchained's promising and humorous concept raised over $400,000 through its pre-sale. The next price increase will take place in less than $6,000, with coins still available for $0.008. However, whale activity has increased recently.
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