Meme coin mania sees over 138 tokens launched in April

Meme coins continue to be a hot crypto conversation in the second quarter of this year, following the surprising rise of popular tokens like Dogwifhat in the first quarter.

Blockchain researcher Crypto Koryo noted that CoinMarketCap captured more than 138 new memecoins launched under the ERC-20 standard last month.

While the number has increased more than sevenfold compared to April last year, CoinMarketCap lists only a fraction of the tokens distributed. In other words, the number of new memecoins entering the market in the previous 30 days was likely much higher.

Meme money speculation backed by advanced tools

Launching a meme coin, or any cryptocurrency, for that matter, was more complex two years ago and required technical expertise that few people had. However, emerging blockchain solutions and tools have made this possible in just a few clicks, encouraging more creators to enter the market.

New token standards have lowered the barrier to entry, with developers using wrappers like the Runes protocol on Bitcoin (BTC) and tokens like SRC-20, DRC-20, and ASC-20 on EVM chains. The introduction of new standards and optimizing on-chain transactions has also led to the redirection of liquidity from giants like Ethereum (ETH) to competitors like Solana (SOL).

Citing CoinMarketCap data, Crypto Koryo highlighted that Solana is the current meme token hub that has effectively dominated the space since last year. Three years ago, users had to speculate almost exclusively on ETH-based projects like Dogecoin (DOGE), Floki Inu (FLOKI), and Shiba Inu (SHIB) to find ample liquidity.

Memecoins on blockchains | Source: Crypto Koryo, CoinMarketCap Meme oversaturation fears

The ability to attract new users and capital to a broader range of meme games has certainly increased, but the new paradigm presents its own pain points despite easier access.

Better tools and improved decentralized networks have caused the memecoin market to become oversaturated. Crypto Koryo stated that many of these tokens will go to zero in X, which will make it difficult for investors to seek rewards.

“This isn’t just a bull market thing. The number of Memecoins is now very high and continues to rise rapidly. Even in terms of strategies, if you go with the purely on-chain approach and try to get in early, RR is great when it works but the win rate is low. Conversely, if you take a social approach, such as waiting for CT to take its place, the win rate will be higher but you will miss out on most of the RR.”

Crypto Koryo, blockchain researcher