Meme Coins Flood The Crypto Market

Meme Coins Flood The Crypto Market – Here’s How They’re Affecting NFTs

Updated: 19 May 2023

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Meme Coins and Shitcoins have recently gained popularity among investors and the crypto community. The recent meme coin mania has pushed investors to abandon other digital assets like crypto and non-fungible tokens. Below we will look at how the current market hype surrounding meme coins may affect NFTs.

Meme Coins, sometimes known as Shitcoins, are crypto tokens based on some internet memes. These tokens do not have any inherent value or utility. They are cheaply built on top of existing algorithms and protocols, and their rise to prominence or mainstream trade rides solely on them being backed by influential people and current trends.

Meme coins merely have nothing to contribute towards advancing the crypto world and technology and do not serve any particular purpose. Dogecoin (DOGE) is the original and most prominent meme coin. The flagship meme coin was created in 2013 by software engineers Billy Markus and Jackson Palmer. DOGE was branded around a popular meme: the “doge” Shiba Inu dog.

Since its inception, the Dogecoin meme has inspired the establishment of many meme coins and shitcoins, including Shiba Inu, Pepe the Frog, and Tamadoge. The crypto market has since then seen an enormous increase in the number of meme coins and utility crypto tokens.

How Do Crypto Tokens Affect NFTs?

Crypto token drop is considered the most speculative, even the non-fungible token cycle. Yuga Labs’ flagship NFT collection, Bored Ape Yacht Club, dropped its crypto token “$Ape.” The new crypto token impacted the NFT collection positively, pushing the Bored Ape floor price above $290,000.

Bored Ape Yacht Club: Source: CoinGecko.com

The Captainz, an NFT collection featuring a fixed set of 9,999 NFT on the Ethereum network, is another perfect example of impacted positively. The NFT collection has pumped over 60% since launching its crypto token $meme despite the recent bear market.

Nonetheless, in most cases, these crypto tokens can impact non-fungible token collection negatively. Cool Cats, an NFT collection featuring a limited edition of 10,000 NFTs on the Ethereum network, is a perfect example. In 2021, the NFT collection teased its $milk utility token, pushing its price from 6 to 15 ETH.

Cool Cats NFT Collection: Source: CoinGecko.com

Unfortunately, Cool Cats’ highly anticipated games were delayed in 2022, leaving its newly launched crypto token with no utility. Since then, the NFT collection, alongside its $milk token, has been down. Cool Cats has returned to life after launching its Season 2 metaverse journey. It has pumped 0.8% in the past 24 hours to $1,358.

What Should NFTs Do To Get Less Affected?

NFT projects should at least embrace on-time airdrop. Bored Ape Yacht Club is an example, which launched its $Ape and organized one claim, one event in one batch. This method worked very well for it since the token supply was limited. The NFT collection continued to pump high post-airdrop and is now one of the most successful NFT projects amid the bear market.

Building crypto tokens that meet users’ needs is another essential aspect of non-fungible tokens.NFT projects should create crypto tokens that represent products with actual demands. For instance, the products you buy in the Otherside metaverse game, including cosmetics, power-ups, and limited edition NFTs, can be turned into $APE.