Memecoin Cryptocurrency Phenomenon Grows, Worth $65 Billion

The phenomenon of 'memecoins' is growing in the cryptocurrency landscape, digital coins born in the wake of phenomena that went viral online, with no real utility and easily subject to speculation. It all started in 2013 with Dogecoin created by two computer scientists to mock Bitcoin. Then came Shiba Inu, supported by Elon Musk and more recently, close to the American presidential elections, $Trump and $Melania were launched.

"At the end of 2024, the global memecoin market recorded strong growth, the overall capitalization went from around 40 to over 120 billion dollars in less than three months. To date, the sector stands at around 65 billion dollars", Giacomo Vella, Director of the Blockchain & Web3 Observatory of the Polytechnic University of Milan, told ANSA, for whom the phenomenon is characterized by "extreme volatility and poor transparency". "Not infrequently - he underlines - there is a lack of reliable information on the team, roadmap or economic management of the project, making these assets particularly vulnerable to speculative dynamics". The analysis company Nansen Research estimated that 86% of investors in one of the main memecoins lost a total of 251 million dollars.

Platforms like Pump.Fun have made it easy for anyone to create and launch a new memecoin, leading to a boom in digital currencies and unprecedented volatility. According to Wired, nearly 6 million memecoins have been launched on Pump.Fun alone as of January 2025. "In this context, the European regulator appears aware and attentive and is working to limit the risks for European savers," Vella concludes.