• The Binance Research team presented a report on meme coins.

  • Experts noted a near tripling of their share in the altcoin market over the past two years.

  • They added that more than 75% of all meme coins were created only in the last year.

Since 2022, the share of meme coins in the altcoin market has almost tripled—from 4% to 11%. This follows from the report by Binance Research experts, which they shared with Incrypted.

The ratio of the total market capitalization of meme coins to altcoins. Data: Binance Research report.

According to them, this highlights the growing interest of new investors in such an asset class as a tool for obtaining high returns despite the risks. Analysts also noted that the emergence of meme coins is the result of a complex, technology-driven ecosystem.

Binance Research added that 94% of cryptocurrency buyers belong to the Millennial and Gen Z generations (ages 18-40), "who seek transparent, accessible, and alternative financial instruments."

At what age are crypto assets purchased the most. Data: Binance Research report.

“Meme coins have become a symbol of the values of decentralization and openness, making them particularly attractive to young investors disillusioned with traditional financial systems,” the report states.

In addition, analysts added that more than 75% of all meme coins were created only in the last year.

Experts also stated that meme coins are more accessible to the average user than other altcoins. In their opinion, it is easier to understand the principles underlying a particular meme token than to study technically complex solutions.

Meme coins can quickly attract significant capital, according to the report. Binance Research noted that the dogwifhat (WIF) token reached a market capitalization of $1 billion in just 104 days, Shiba Inu (SHIB) took 279 days, and Dogecoin (DOGE) took eight years.

“However, the life cycle of meme coins remains short: 97% of such assets have already experienced a significant decline in trading volumes, highlighting their high volatility and risk for investors,” the experts added.

The report also notes that meme coins are a high-risk asset with high volatility and risk of manipulation. Experts reminded about the existence of a fraudulent scheme called Pump and Dump.

Earlier, the co-founder of Castle Island Ventures predicted a downturn in the meme coin sector if Donald Trump wins the presidential election in the United States.