For a variety of reasons, the total crypto market cap has now exceeded $2.6 trillion dollars. While a lot of this fresh capital has been flowing into solid blockchain projects, much of it has gone into degen meme coins such as Jeo Boden ($BODEN) as well.
Meme coins (like DOGE, for example) have been around for over a decade, but are especially hot these days, as the crypto market is getting a significant injection of liquidity from traditional finance. The most recent meme coins (launched mainly as SLP tokens on the Solana blockchain) are representative of how the people are losing respect for their political leaders, and the greed people experience in the crypto space.
Excess Liquidity Fuels Frenzy
As the US government continues to borrow 1 trillion dollars every three months (from who, exactly?), and the recently approved Bitcoin ETFs draw in a significant amount of fresh capital, a lot of cash is sloshing around in the crypto markets. Some developers are taking advantage of the situation by creating meme coins in hopes of striking it rich (in soon to be worthless fiat currency).
On Wednesday, $BODEN exceeded $23 million dollars in trading volume, causing it to skyrocket 830% in a single day. Other celebrity-based meme coins have been rising in value too, as they try to catch up with the more established $PEPE and $BONK. Let us not forget about "Dog With Hat" $WIF, which has increased 430% in the past fourteen days alone!
Keep in mind that none of this meme coin nonsense would have been possible if the US government and federal reserve had actually been responsible and allowed zombie corporations to fail, instead of printing insane amounts of money to keep them all propped up. Thanks to experimental monetary policies and out-of-control spending since the financial crisis of 2008, the cryptocurrency market is being flooded with excess capital.
It Triggers An Emotional Response
A lot of Twitter users are shaking their fists angrily at these meme coins, as some of their market caps surpass those of projects which have actually been building responsibly throughout the bear market. Don't let the short-term success of these meme coins get the best of you. Instead of losing your temper, consider allocating a small portion of your portfolio (less than 1%) to these meme coins in order to participate in the fun and just laugh along with it.
https://x.com/kevinsekniqi/status/1765808839155413403?s=20
Unfortunately many people are going to lose money gambling on these degen meme coins, and will be left feeling resentful towards crypto in general. Rather than getting caught up in the mass speculation, direct your capital into solid cryptocurrencies that have a long-term future. Thankfully, there are projects that have been responsibly using the incoming capital to build a better financial system for the next generation.
If we can agree on the premise that the debt-based fiat monetary system is on its last legs, and is likely to fail sooner rather than later, the US dollar value of these cryptocurrencies is irrelevant in the long-run. People can play hot potato with meme coins and fiat currencies for now, but the best course of action would be to invest in the projects that are building the foundation of our future financial system.
Have A Good Laugh
Let's all have a good laugh at these meme coins, and not take them too seriously. This meme coin frenzy will probably go down in history as merely part of the genesis of our new decentralized financial system. Eventually, as fiat currencies fade away and are replaced by decentralized cryptocurrencies, the projects that have been building diligently throughout multiple bear markets will be justly valued.
If you enjoyed this article, be sure to check out my other posts on finance and crypto here on the HIVE blockchain. You can also follow me on InLeo for more frequent updates.
Until next time...
Resources
Jeo Boden and Doland Tremp [1]
Coindesk Meme Coin Article [2]