May 25, 2024
Surge in New Memecoin Traders Reaches Record High: IntoTheBlock
Altcoins News

Surge in New Memecoin Traders Reaches Record High: IntoTheBlock

The rise of memecoins has sparked a frenzy in the crypto market, attracting a surge of new investors eager to ride the wave of potential gains. According to market intelligence platform IntoTheBlock, the number of wallet addresses holding meme-related tokens for under 30 days skyrocketed to a record high in March, indicating a significant influx of new traders entering the memecoin sector.

Massive Gains Drive Attention

The attention surrounding memecoins can be attributed to the staggering gains many projects exhibited in the first quarter of 2024. Coin information tracker CoinGecko dubbed the memecoin sector as the “most profitable crypto narrative” during this period, with memecoins boasting an average return of 1,312.6%. Projects like Book of Meme (BOME) and Dogwifhat (WIF) contributed to these impressive figures, fueling the memecoin frenzy.

Tales of Life-Changing Gains

Stories of individuals turning modest investments into millions have further fueled interest in memecoins. One trader famously transformed $62 into $2 million by investing in a Solana memecoin named Silly Dragon (SILLY), which humorously referenced Solana co-founder Anatoly Yakovenko’s Halloween costume. Another trader recently turned $13,000 into $2 million within just one hour after purchasing a meme-based token.

On April 3, a crypto trader experienced a jaw-dropping 15,700% gain by investing in a memecoin called Donotfomoew (MOEW) minted on the Base network.

The Flip Side of Memecoin Investments

While memecoins offer the potential for astronomical returns, not every investor strikes it rich. Some miss out on potential gains by selling too early, while others fall victim to scams exploiting the hype surrounding memecoin presales.

On March 15, a trader missed out on potential millions after selling BOME tokens prematurely. The trader initially purchased 170 million BOME for $8,000 but sold them for approximately $131,000. With BOME currently trading at around $0.01615, those tokens could be worth $2.7 million in today’s market.

Source: Solscan

Scams and Abandoned Projects

Unfortunately, the allure of memecoins has also attracted unscrupulous actors. A Solana memecoin project called “Condom” left investors high and dry before its launch. The creators of Condom abandoned its X page and absconded with nearly $1 million worth of Solana tokens.

As the memecoin frenzy continues to captivate investors, caution is advised to navigate the volatile and often unpredictable landscape of meme-based cryptocurrencies.

Image by stockgiu on Freepik

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