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Fantom is the latest Layer 1 blockchain actively courting meme coins amid the wave of explosive growth these assets have had.
Andre Cronje, the network’s founder, disclosed his ongoing examination of meme coins and the potential potential integration into Fantom.
Fantom’s Andre Cronje Eyes Community Safe Meme Coins
Cronje revealed that he is currently working on crafting a framework for launching, nurturing, and safeguarding community-centric meme coins. However, this endeavor has left him feeling exasperated, owing to the inherent volatility and limited utility linked to these digital assets.
Still, this initiative hints at Fantom’s imminent entry into the expanding array of smart contract networks facilitating the easy creation and exchange of memecoins.
Since the beginning of the year, meme coins have witnessed a spike in interest among cryptocurrency investors. Notably, various blockchains such as BNB Chain and Avalanche have rolled out incentives to entice meme coin developers into these networks.
Blockchain analytics platform IntoTheBlock reported that the collective value of this sector has nearly tripled, reaching a market capitalization of $56 billion. Surges in several Solana-based meme coins like Dogwifihat (WIF) and Book of Meme (BOME) fueled this uptick. Meanwhile, other established meme coins such as Dogecoin, Shiba Inu, and Pepe have also witnessed a massive rise this year.
Read more: 7 Hot Meme Coins and Altcoins that are Trending in 2024
Remarkably, meme coins have flourished within ecosystems featuring lower fees. For example, Solana has witnessed multiple days of higher trading volumes than Ethereum in this quarter alone. This heightened network activity has significantly propelled trading on Solana to record levels.
However, the proliferation of automated bots has impacted Solana’s network performance.
“Demand for meme coins hit the highest since 2021 this quarter. Despite interest rates remaining high and no stimmy checks being sent out, appetite for seemingly useless crypto-assets has been very strong. It’s unclear whether this is due to the economy getting overheated, or perhaps just growing “financial nihilism”, but meme coins have become the main subject in crypto over the last few months,” Lucas Outumuro, the head of research at IntoTheBlock remarked.
Despite the hype surrounding meme coins, several concerns persist, particularly regarding their security and lack of practical application.
These concerns prompted Ethereum co-founder Vitalik Buterin to discuss the potential societal benefits of meme coins. Buterin emphasized that these assets could be designed to uplift and unite communities and serve as instruments for social good and entertainment.