Mike Novogratz hails memecoins as the ‘cornerstone’ of crypto

Novogratz Sees Memecoins as a 'Powerful Narrative' in the Crypto Economy

Galaxy Digital's Mike Novogratz believes memecoins play a significant role in the crypto economy. He recently stated that memecoins have become a "cornerstone" of the crypto world.

Based on volume and open interest rates, DOGE and PEPE are likely to recover faster than other memecoins. The category may perform strongly again in Q2, as evidenced by its resilience during market drawdowns. For instance, PEPE and BONK led the recovery after a recent market rebound.

Memecoins: Fortune and Challenges

Novogratz acknowledged that memecoins can generate substantial profits, citing dogwifhat's (WIF) viral growth to a $3 billion market cap.

However, the massive profits have also attracted scammers, leading to numerous memecoin-related rug pulls. Solana-based Jupiter Exchange CEO, Meow, acknowledged the challenges and stated that safety and risk-taking are not mutually exclusive.

Current Market Landscape

Most legacy memecoins have experienced double-digit declines on weekly charts. However, DOGE and PEPE have held their value better than others following the FOMC meeting.

While the AI Big Data narrative is currently dominating market interest, DOGE and PEPE within the meme segment have the highest OI and volume, indicating increased liquidity. This suggests that they may be poised for a headstart in recovery.

Source: Memecoins performance, TradingView
Source: Coinglass