The world of cryptocurrencies has seen a resurgence in Memecoin Mania, and Ethereum has been at the forefront of this rally. The likes of Dogecoin, Shiba Inu, and SafeMoon have propelled Memecoin Mania to new heights, with enthusiasts buying them up in droves. Ethereum, however, has also been a beneficiary of this trend, with its value rallying as a result.
There are a few reasons why Ethereum has rallied off the back of Memecoin Mania. To understand why, we need to first understand what Ethereum is, and how it differs from other cryptocurrencies.
Ethereum is a blockchain platform that allows developers to create and deploy decentralized applications, otherwise known as dApps. These are programs that run on a decentralized network of computers, without the need for a central authority. Ethereum allows developers to create dApps that can be used for a variety of purposes, from finance and gaming to social media and supply chain management.
Unlike Bitcoin, which is primarily used as a store of value, Ethereum is a utility token, used to pay for transactions and services within the network. This means that as more dApps are created, and more people use Ethereum for transactions, the demand for Ethereum will increase, driving up its value.
Memecoin Mania has played a significant role in driving up the demand for Ethereum. Many of the Memecoin Mania coins are built on the Ethereum blockchain, meaning that people have to use Ethereum to buy these coins. This has led to a surge in demand for Ethereum, as people seek to buy Memecoins.
Another reason why Ethereum has rallied is that it is seen as a more stable alternative to the Memecoins. While the likes of Dogecoin have seen massive spikes and crashes, Ethereum’s value has remained relatively consistent. This has made it a more attractive investment option for those looking to profit from the Memecoin Mania trend.
Moreover, as more dApps are created on the Ethereum network, the value of Ethereum is likely to continue to rise. This is because more people will need to use Ethereum to access these dApps, increasing demand for the cryptocurrency.
One of the most significant factors driving Memecoin Mania is the influence of social media. Platforms like Reddit, Twitter, and TikTok have played a significant role in promoting these coins, with influencers and celebrities jumping on the bandwagon. This has led to a surge in demand for Memecoins, which has also spilled over into Ethereum.
The surge in demand for Ethereum has also been fueled by institutional investors. Companies like Grayscale Investments, which offers cryptocurrency-based investment trusts, have been buying up large amounts of Ethereum, driving up its value. This has encouraged more retail investors to jump on the Ethereum bandwagon, further driving up its value.
It is worth noting that Memecoin Mania is not without its risks. The trend is fueled by hype and speculation, rather than any fundamental value. This means that prices can be highly volatile, with significant swings in either direction. Investors need to be prepared for the possibility of losing their money, and should only invest what they can afford to lose.
In summary, the resurgence of Memecoin Mania has driven up the demand for cryptocurrencies, including Ethereum. As more people seek to invest in Memecoins, the demand for Ethereum has surged, as it is the platform that many of these coins are built on. Ethereum’s value is also likely to continue to rise as more dApps are created on its network, further increasing demand. While the Memecoin Mania trend has risks, those who have invested in Ethereum are likely to see significant gains as the trend continues to play out.
The crypto industry is seeing a resurgence of memecoin mania, which is benefiting the Ethereum network. The increased activity of meme coins on the Ethereum network is generating significant gas fees. The more gas fees are charged, the more ETH is burned, making it more scarce and valuable. This is pushing ETH into deflationary status as the supply decreases rather than increases.
As of May 5, 2023, ETH closed at $1,900, hopping 5.61% higher, and at press time, it was trading at $1,965.61, jumping 3.66%. Bitcoin also rallied, trading at $29,405.49, hopping 0.63%. The market capitalization gained 3.70% to $236 Billion, and volume jumped by 50.48% to $10.17 Billion in the last 24 hours.
Meme coins like Pepecoin (PEPE), SpongeBob token (SPONGE), Dogecoin (DOGE), and Shiba Inu (SHIB) are riding heavily on the hype created on social media, even though many investors suffered in the past from investing in them. However, the launch of the newly created SpongeBob token (SPONGE) on May 4, 2023, trading at $0.0004858, gained 342.95% and had its volume increased by 1,356.13% to $31 Million, and a market cap purportedly at $17.6 Million in the last 24 hours.
Pepe Coin (PEPE), based on the internet meme Pepe, the frog, was at press time, trading at $0.000003098, gaining 48.05%, and trading volume hiked by 291.08% to $2.75 Billion, while market cap remained unchanged at $1.21 Billion in the last 24 hours.
Interestingly, in the last 24 hours, PEPE volume on Uniswap exceeded that of Tether (USDT) and wrapped Bitcoin (wBTC), two of the most significant trading tokens on the exchange.
For every transaction on the Ethereum network, a gas fee is charged, and it needs to be paid in ETH. The nodes in the network earn a fraction of this fee as a reward for spending computing power for validation and confirmation of transactions. The remaining fee is burned, meaning this increased activity is causing more burning and fueling the rally.
As ETH is already at its maximum supply, taking a considerable amount out of circulation through burning is supposed to increase the scarcity and rally. This is good news for the Ethereum network and its investors, as the rally is likely to continue as more meme coins are expected to join the bandwagon.
In conclusion, memecoin mania is back in the crypto industry, benefiting the Ethereum network. Increased meme coin activity on the Ethereum network generates gas fees, which burns more coins, increasing the price. As ETH is already at its maximum supply, burning a considerable amount will make it more scarce and valuable. This might fuel the continued rally of Ethereum, attracting more investors to the network.