The number of new memecoin traders has set a record high – IntoTheBlock
Memecoins has started a new crypto craze, attracting new investors to trade and look for the next big token that can bring big profits.
According to market data platform IntoTheBlock, the number of wallet addresses holding meme-related tokens less than 30 days old had a record high in March.
The analytics platform revealed that this past month shows a huge influx of new traders buying memecoins.
The number of traders jumping into the memecoin sector could be the reason for the huge profits made by memecoins in the first quarter of 2024.
On April 3, coin data tracker CoinGecko named the memecoin sector the “most profitable crypto narrative” in the first quarter of the year.
Memecoins showed average returns of 1,312.6%, the highest by market capitalization. Projects like Book of Meme (BOME) and Dogwifhat (WIF) have seen their percentages rise amid the memecoin craze.
Stories extolling life-changing profits may also have played a role in attracting traders to the sector.
After a trader bought Solana memecoin, $62 turned into $2 million. Crypto user caught wind of the Silly Dragon (SIL) memecoin, which mocked Solana co-founder Anatoly Yakovenko's Halloween costume.
Recently, another trader turned $13,000 into $2 million in an hour after buying a meme-based token.
On April 3, a crypto trader made a 15,700% profit after buying Donotfomoew (MOEW), a memecoin developed on the Base network.
RELATED: Trader Wins $1.69M in 5 Days After Gambling $226K on Solana memecoin
While memecoins have the potential to generate huge profits, not everyone will be so lucky. Some people lose their gains by selling too early, while others fall victim to scammers using the memecoin presales hype to steal users' money.
On March 15, a trader scammed millions of people after selling BOME tokens before the price crashed. The trader bought 170 million BOME for $8,000 and sold the tokens for $131,000.
At the time of writing, BOME is trading at $0.01615, which means the tokens could be worth $2.7 million in the current market.
Meanwhile, Solana's memecoin project called “Condom” pulled out investors before launch. The creators of memecoin left the X page and took almost $1 million worth of Solana (SOL) tokens.
Magazine: 5 risks to be aware of when entering Solana memecoins
