Study: Crypto Market Participants Embrace Meme Coins Over High-FDV Projects
A new study conducted by Kucoin has revealed that participants in the crypto market are favoring character or celebrity meme tokens over projects with high fully diluted value (FDV). The report suggests that this shift in preference is driven by investors’ frustration with high-FDV projects and their limited initial circulating market capitalizations.
FDV represents the total value of a cryptocurrency project considering all tokens, including locked ones, in circulation. High FDV can potentially dilute the token’s value when locked tokens or coins are released. This limited price discovery for retail investors and makes wealth creation challenging, leading many to gravitate towards meme tokens with low-market-cap assets.
The report highlights the success of Notcoin, a token that launched with 100% of its tokens in circulation from the start. Notcoin experienced significant growth in price and trading volume, attracting market attention to its Tap To Earn and Minigame products.
Tap-to-earn projects are gaining traction due to their lower barriers to understanding and participation. The report also mentions the high-performance and scalable architecture provided by TON technology, which supports Notcoin’s smooth gameplay. Additionally, the integration of Notcoin with Telegram has helped reduce customer acquisition costs while rapidly expanding its user community.
These findings shed light on the shifting preferences and behavior of crypto market participants. It remains to be seen how the market will continue to evolve in response to these trends.