Meme coins with misspelled celebrity names like Jeo Boden, Danold Tromp, and Olen Mosk have sparked a buying frenzy among Solana users.
My Boden wallet this morning wtf pic.twitter.com/QrMAELPPom
— Hector: Crypto Coin Buyer (@zKXBT) March 6, 2024
Below are other assets in the category.
Interest in the segment arose after an improvement in market sentiment led to double- and triple-digit price surges within a week for DOGE, SHIB, BONK, PEPE, and WIF.
In their early days, these “funny” meme coins, inspired by the Uncle Dolan comic, rapidly increased in value.
For instance, Jeo Boden’s price soared by ~12,000%, with its market capitalization reaching $49 million. Interest may have been sparked by the upcoming March 7 address by U.S. President Joe Biden to Congress on the state of the nation.
Those looking to lock in profits should consider the low liquidity of these assets. For example, Jeo Boden’s daily turnover is $250,000, while Danold Tromp’s is $75,000.
Martin Lee from Nansen Data explained to The Block that FOMO is driven by low transaction fees.
“Solana is an inexpensive network that creates a much more trader-friendly environment for those moving further along the risk curve. Extremely small bets on highly speculative assets are a popular strategy when gas fees are just a few cents,” he explained.
According to the expert, as the price of major cryptocurrencies rises, some traders tend to move further along the risk curve.
“With the rapid recovery of prices for major digital assets like Bitcoin, Ethereum, and Solana, confidence in the market remains high, and traders are seeking greater profits,” he added.
According to CoinGecko, the market capitalization of the meme coin sector decreased by 4.5% to $54.4 billion in a day. Over the past seven days, the figure rose by 74.2%.
As reported by Bybit analysts, they assessed the share of altcoins in retail investors’ portfolios at 28.8% as of January 31, while for institutional investors it was 5.16%.