Meme coins are set to dominate the cryptocurrency market in a way nobody expects. This is according to Chris Burniske, a veteran investor in the space.
Burniske, a partner at venture capital firm Placeholder, shared his insights on social media platform X.
Meme coins are cryptocurrencies inspired by internet memes or jokes, they often gain popularity through social media hype. Dogecoin and Shiba Inu are well-known examples.
Burniske believes meme coins will exceed expectations in the current market cycle. He cites their "tendency to trigger" as a key factor. This refers to their ability to spark sudden, viral interest. "The cultural relevance some NFT collections garnered in 2021 will be surpassed by some meme coins," Burniske stated. He added, "Not here to endorse a horse, but the trend is clear."
The crypto veteran also expressed optimism about non-fungible tokens (NFTs). He predicts a shift in focus for the NFT market. Burniske sees a move away from profit-driven profile picture collections.
"True art and creative utility will come into better focus for NFTs," he said. Burniske envisions an "NFT renaissance" on the horizon.
This shift could reshape digital communities. Burniske explained, "This segmentation will ultimately allow builders/creators to better speak to their tribes, and consumers to better diagnose the motivations behind the digital tribes they join."
Burniske's bullish stance extends beyond meme coins and NFTs. Last month, he noted favorable conditions for crypto as an asset class. He pointed to improved infrastructure and increased user growth. "It's not just favorable rates and liquidity that are promising for our asset class," Burniske remarked. He highlighted "maturation of the infrastructure" and "builder experimentation with apps" as positive factors.
Current market data supports Burniske's observations as meme coins boast a total market capitalization of $53.573 billion. NFTs trail behind with a $24 billion valuation. These figures underscore the growing significance of meme coins in the digital asset ecosystem.
Most of the well-known meme coins last week behaved rather underwhelmingly; one notable exception was Popcat, which showed an explosive climb.