According to CryptoPotato, meme coins, despite suffering from last year's market downturn, are experiencing a revival. This resurgence is driven by increasing interest and participation from retail investors, coinciding with a broad recovery in crypto assets. The number of addresses holding meme coins for less than thirty days reached a record high last month, indicating a significant influx of new traders entering the market and purchasing meme coins.
CoinGecko's latest report aligns with this trend, revealing that meme coins were the most profitable crypto narrative in Q1 2024, with an average return of 1,312.6% across leading tokens. Among the top 10 meme coins by market capitalization at the end of the quarter, three new tokens - Brett (BRETT), BOOK OF MEME (BOME), and Cats in a Dogs World (MEW) - made their debut around March. BRETT outperformed the rest, yielding an impressive return of 7,727.6% by the end of Q1 compared to its launch price. Dogwifhat (WIF) followed closely, attracting a quarter-to-date (QTD) return of over 2,721% after going viral and sparking the ongoing meme coin frenzy.
Interestingly, the meme coin narrative outperformed other cryptocurrency narratives, such as real-world asset (RWA) and Layer 2, by 4.6 and 33.3 times, respectively, in terms of profitability during Q1. On April 3, a crypto trader turned their initial investment of $13,000 in a new meme coin on Base blockchain called Donotfomoew (MOEW) into over $2 million, a staggering gain of 15,700%. The trader swiftly acquired 499.9 million MOEW tokens using 4 ETH within just 10 minutes of the meme coin’s listing on DEXes. Within less than an hour, the trader sold 111.65 million MOEW tokens for 99 ETH, equivalent to $328,000. As of April 3rd, the trader still holds 388.24 million MOEW tokens, worth around $1.75 million.