Meme Coins Take Over Crypto Markets; Should Bitcoiners be Concerned?

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Last week, meme coins took the crypto world by storm, with a trading volume of $2.3 billion, marking a six-fold increase from the previous week. This surge in popularity has raised concerns about the speculative mania in non-serious cryptocurrencies and the potential impact on the broader crypto market.

PEPE: A Three-Week-Old Meme Coin With a Market Cap of $1.82 Billion

The recent surge in meme coin trading volume was primarily driven by Pepecoin (PEPE), a frog-themed token launched in mid-April. On Friday, PEPE’s market capitalization surpassed $1 billion and eventually peaked at $1.82 billion. While this is a remarkable achievement for a three-week-old meme cryptocurrency, the market cap has since fallen to $889 million.

Also Read: Memecoin Mania: What To Expect From PEPE, SHIB, DOGE Price Next Week? – Coinpedia Fintech News

BRC-20 Tokens and the Bitcoin Network

Many of the meme coins, including PEPE, use the BRC-20 standard, which is currently taking over the Bitcoin network, causing a market cap of over $500 million for these tokens. The growth of BRC-20 tokens has been fueled not only by the proliferation of meme coins but also by the rise of non-fungible tokens (NFTs). Daily minting fees on BRC-20 reached a record high of 247 BTC on May 7, with total fees for Bitcoin Ordinals amounting to 641 BTC.

The Ethereum Network Congestion

One possible explanation for the shift of meme coins towards the BRC-20 standard is the congestion of the Ethereum network, which has been exacerbated by the popularity of tokens like PEPE. The meme coin has recently taken the crypto community by storm, experiencing a staggering 40,000% surge.

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