- Novogratz sees memecoins as a ‘powerful narrative’ in the crypto economy.
- Based on volume and open interest rates as of press time, DOGE and PEPE could recover faster than the rest.
Galaxy Digital’s Mike Novogratz has joined industry leaders who view memecoins as a crucial part of the crypto economy. In a recent podcast, the executive stated that memecoins had become the ‘cornerstone’ of the crypto world.
Novogratz added that,
‘In today’s market, they’re one of the most powerful narratives out there.’
His outlook supports most market observers, who have termed the current market run a ‘memecoin supercycle.’ The term was cemented after memecoins became the top-performing narrative in Q1.
The category might perform better again in Q2, given how fast they recover against other categories after market drawdowns. For instance, Pepe [PEPE] and Bonk [BONK] led recovery amidst a recent mid-week market rebound.
Memecoins: Fortune and challenges
Novogratz also reiterated memecoins could generate a fortune and mentioned dogwifhat’s [WIF] viral growth to $3 billion in market cap.
On his part, Meow, pseudonymous CEO of Solana-based Jupiter Exchange, viewed memecoins as ‘user-generated money’ and ‘gateway’ to the rest of crypto stacks.
Solana-based DEXes (decentralized exchanges), especially Jupiter and Raydium, have dominated the memecoin trading on the Solana network.
However, massive profits have also attracted scammers, with unsuspecting investors losing money in numerous memecoin-related rug pulls in Solana.
Meow acknowledged the challenges and stated that,
‘Gonna start by making it safe for people to participate first. Safety and aping are not mutually exclusive.’
However, the executive didn’t divulge more details on how he would accomplish that.
In the meantime, most of the legacy memecoins were down double digits on the weekly charts.
However, on an adjusted timeline between Monday and Thursday (post-FOMC), Dogecoin [DOGE] and PEPE were fairly holding well against sell pressure at the time of writing.
Source: Memecoins performance, TradingView
DOGE and PEPE were down a mere 1%, but BONK, WIF and Shiba Inu were down 4%, 7.5% and 7.9%, respectively.
However, a strong rebound for the meme segment could take a while as most market interest was concentrated on the AI Big Data narrative, per Coinglass data.
In the past 24 hours, the AI segment led with over 80% volume uptick and a 4.8% jump in Open Interest (OI) rates. The meme segment came in at the sixth position with a 15% volume increase and below 1% OI.
Source: Coinglass
Within the meme segment, DOGE and PEPE had the highest OI and volume, indicating more liquidity flowed into them.
So, despite a possible delay in meme recovery based on category, DOGE and PEPE could have a better headstart.