Memecoins have sparked a new cryptocurrency craze, attracting investors new to the trade and looking for the next big token to make huge profits.
Market analysis platform IntoTheBlock shows that the number of wallet addresses holding memecoin-related tokens for less than 30 days reached a record high in March.
The number of traders jumping into the memecoin sector can be attributed to the huge increases recorded by memecoins in the first quarter of 2024.
On April 3, coin information tracking tool CoinGecko named the memecoin sector the "most profitable cryptocurrency narrative" in the first quarter of the year.
Memecoins showed an average return of 1312.6% , the highest among the top tokens by market capitalization. Projects such as Book of Meme (BOME) and Dogwifhat (WIF) drove up percentages amid the memecoin frenzy.
Stories highlighting life-changing gains may also have played a role in attracting traders to the sector.
In December, a trader turned $62 into $2 million after buying a Solan memecoin. A user of the cryptocurrency spotted a memecoin called Silly Dragon (SILLY), which mocked the Halloween costume of Solana co-founder Anatoly Yakovenko.
Recently, another trader turned $13,000 into $2 million within an hour after buying a token based on the meme.
