Trading in memecoins is beneficial for decentralized exchanges (DEX) as it attracts non-traditional DeFi traders to the platforms. This was stated by Synthetix founder Kain Warwick at the MemeGlobal Sydney conference, reports Cointelegraph.
“There is an opinion that memecoins are pure speculation. In my view, speculation is good. They are valuable,” he added.
Warwick disagreed with some speakers who deny the usefulness of this class of cryptocurrencies.
According to him, memecoins bring large volumes to DEX, enabling platforms to create “more sophisticated solutions”:
“Even if funds are invested in a purely speculative instrument that has no utility, the ecosystem around it begins to form, money flows, and investments go into infrastructure.”
According to DeFi Llama, decentralized exchanges have locked assets totaling $19.4 billion. In the past 24 hours, trading volume on DEX exceeded $5.4 billion.
Warwick added that memecoins, NFTs, and GameFi “engage more emotions and cultural ideas, which are much more interesting, understandable, and accessible to the average person than DeFi.”
While the economy “affects everyone,” people do not think about it every day, the Synthetix founder added. However, games, movies, and music captivate more, making memes “the simplest link between finance and culture.”
He noted that memecoins are “quite useful as a hook” to interest people in the DeFi sector and cryptocurrencies.
“There is something elegant in this simplicity. There is no yield, revenue, cash flow, or anything else,” Warwick concluded.
Earlier, Messari’s head of research Martje Bassi stated that memecoins will remain a vital part of the crypto industry and potentially evolve into a new asset class. She called them a “Trojan horse” of the next era of native consumer applications.
Back in March, CryptoQuant founder and CEO Ki Young Ju expressed concern over the boom in the memecoin segment. According to the expert, such projects simply harm the crypto industry.