Meme tokens continue to demonstrate leading positions in profit growth, despite the recent correction in the cryptocurrency market, experts from the analytical company Kaiko said in a new weekly report.
Since the beginning of the year, the returns of these assets have ranged from 80% to 1800%, and weekly trading volume during this period increased by 200% to reach $11 billion.
Kaiko analysts note that the current situation differs from historical data: previously, during market downturns, traders preferred to invest in high-quality assets, which led to a decrease in the profitability of meme tokens.
Meme tokens often do not have specific purposes or use cases, and their valuation is based on popularity in the community or online trends, making them speculative and highly volatile.Experts believe that the current high growth of meme tokens is due to their accessibility to a wide range of investors and their ability to adapt to trends.
These factors work together to attract new members and keep the community engaged.In addition, analysts noted that the meme-token segment uses a significantly larger volume of borrowed funds compared to its own (leverage), which is explained by their speculative nature.Earlier, amid the ongoing hype around meme tokens, Solana set a new throughput record, becoming the fastest blockchain with 1054 transactions per second.
Overall, Solana has been one of the main beneficiaries of the rise in popularity of meme tokens.The top 10 such assets by market capitalization include four Solana-based tokens: Dogwifhat (WIF), Bonk (BONK), Book of Meme (BOME) and Popcat (POPCAT).
Syncracy Capital believes that the popularity of meme tokens, combined with other factors, will allow the native Solana token (SOL) to grow to $200 by the end of May, and later update its all-time high above $260
