From the beginning of 2023 to its end most major cryptocurrencies performed well creating confidence in the sector. During the same period several meme coins also fared well as they gained by large margins. SHIB, Ape coin and Dogecoin are some of the memecoins that performed well during the year.
More significantly, several memecoins that exist on the Solana blockchain appreciated as well. That has prompted Avalanche to invest more in memecoins. Today, we discuss how Avalanche plans to invest in memecoins.
Avalanche Ecosystem to Acquire Memecoins in Recognition of the Cryptocurrency Market Niche
The Avalanche Foundation, the organization that funds the Avalanche blockchain, stated that it will invest in memecoins. It will use its $100 million Culture Catalyst Fund to buy memecoins that will become part of its investment portfolio. Originally, the Foundation set aside the money to fund innovative and promising non-fungible tokens.
The purpose of the Avalanche Foundation Culture Catalyst Fund was to promote and empower creators thereby supporting innovation and creativity which propels the adoption of the blockchain.
Now, by investing in the memecoins, the Avalanche Foundation “seeks to better position the blockchain to cultivate and support the many new forms of creativity, memecoin culture, and lifestyle.” To achieve this, it will purchase Avalanche-based memecoins as a means to promote the fun and culture which these digital assets symbolize.
The Avalanche Foundation believes that memecoins have much more significance than the market currently assigns to them. Commenting in its post, the Foundation said, “These coins, often inspired by internet culture and humor, go beyond mere utility assets; they represent the collective spirit and shared interests of diverse crypto communities,”
As per the Foundation, the reason for investing in meme coins is that they have already “carved a niche” in the web3 economy alongside non-fungible tokens and real-world assets (RWAs). With this, the Avalanche Foundation has found it worthwhile to include memecoins in its portfolio.
Emin Gün Sirer, the founder and CEO of Ava Labs admitted that he now values meme coins more than before after he realized that they are an important part of the ecosystem.
Posting on X, he said, “It took me a while to see the value of memecoins myself. I wasn’t happy when Elon was pumping Doge. It also took a while for me to see the value of high-end NFTs. But I now understand the cultural importance of coins that are just social signalling mechanisms.”
Avalanche’s Selection Criteria for the Memecoins
The Avalanche Foundation has made it clear that it will use strict criteria when selecting the meme coins to buy. It is not going to buy memecoins of low value and demand.
According to the Foundation, “The selection process for this collection is based on several key criteria, including the number of holders, liquidity thresholds, project maturity, principles of a fair launch, and overall social sentiment, among other factors.”
Performance of the Avalanche-based Memecoins
The values of several Avalanche-based memecoins that include husky (HUSKY) and shibx (SHIBX) rose by around 25% within 24 hours after the Foundation announced its intention to make memecoins part of its portfolio.
The strong token surge is not something new. Between November and December 2023 the value of a Solana-based memecoin, Bonk, surged by more than 700% in price. During that period several tokens on the Solana blockchain gained significantly.
The Bonk rally triggered a positive performance of many memecoins on different blockchains, including Avalanche and Solana. The hen-themed Coq Inu (COQ) and Shibx were some of the Avalanche-based memecoins whose prices surged by large margin.
As an example, the value of COQ meme coins worth $450 at the time of issuance rose to $2.5 million by the end of December. That illustrates the large gains the crypto traders who purchased COQ tokens made during a short period.
In fact, the COQ memecoin performance was outstanding leading to many crypto traders raking in huge profit. Through trading COQ one trader turned $454 into $2.19M within a fortnight. Many traders favour to trade memecoins on Solana and Avalanche blockchains due to their fast and cost-effective transactions.
Popular Memecoins on Avalanche Blockchain
Despite Coq Inu (COQ) leading the way in the Avalanche memecoin market, reporting a remarkable increase in market capitalization by over 150% in just a few hours, it’s important to note that there are also other tokens on this blockchain.
HUSKY AVAX ($HUSKY): $HUSKY is one of the leading Avalanche-based memecoins to buy. Its value increased by over 80% after Avalanche announced that it will include memecoins in its portfolio.
RED PONZI GUD ($RPG): Anyone who wants to buy memecoins based on the Avalanche blockchain should also consider RPG. In the short period, referred above, the value of RPG increased by 216%. making it one of the most bullish memecoins on the network.
TEAM ROCKET ($ROCKET): The value of ROCKET, a token developed as a tribute to the pseudonymous developers who designed the Avalanche blueprint, rose by 107% within the cited period.
LANDWOLF ($WOLF): This token is gaining much traction as it symbolizes the innovative and commitment of the AVAX community to embrace memecoins and other digital assets. The Avalanche coin enthusiasts can also invest in memecoins like WOLF.
SHIBAVAX ($SHIBX): We have already talked about the SHIBX token surge that underscored the great interest in meme coins within the Avalanche community. SHIBX together with COQ, ROCKET, WOLF, RPG and HUSKY are the bedrock of the memecoin culture of the Avalanche community.
The Avalanche Foundation has announced its intention to include memecoins in its portfolio. SHIBX, COQ, ROCKET, WOLF, RPG and HUSKY are the leading memecoins on the network. The values of these tokens rose by between 25% and 215% within two weeks after Avalanche Foundation announced its intention to invest in memecoins.
Published by Zara