Recently crypto faces some challenging times. Be it criminal charges from Sam Bankman-Fried, the founder of FTX, or the crash that caused crypto holders to move to highly stable investments. People are now facing a new challenge which is memecoins.
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Binance suspended withdrawals
One of the biggest cryptocurrency exchanges worldwide is Binance. Recently it suspended some withdrawals after experiencing an issue of congestion. The network processing transactions of Bitcoin at one point had almost 400,000 stuck in one queue. So fees also increased for conducting transactions. It is now $20 and last month it may have cost almost 87 cents. But many of them are only trying to send memecoins.
A recent upgrade to the crypto network
The blockchain is mainly looking after data that details all transactions. So users are currently capable of writing data into the said transactions which may include jokes or photos. It is known as inscribing. A current upgrade to the network made inscribing quicker and cheaper. Yet the network is twisting under the extra volume. It is because blockchain is now full of NFTs apart from meme coins. Two coins are there and they have a great speculative boom. Their increased volume of trading is preventing the proper flow of work.
Demand for BRC-20 token
There has been a high demand for BRC-20 tokens. It includes transferring some digital collectibles on a network of Bitcoin. The network of Bitcoin has supported more types of tokens such as NFTs. Such adoption must be a positive sign of a longer duration. Yet it appears as if it has highly slowed down its network.
Memecoins are facing challenges to sustain their fast rice surges
Memecoins are facing major challenges when trying to sustain their speed. One of the primary issues is their requirement for intrinsic value. Unlike traditional cryptos, they depend only on the popularity of meme coins or their trend. It makes them very volatile and highly susceptible to sudden crashes in price.
The regulatory landscape of the memecoins
Another factor for considering is the regulatory landscape that surrounds memecoins. As the memcoins’s popularity grows, regulatory bodies may be taking a closer look at such cryptos. Issues regarding market manipulation, protection of investors, and prospective financial risks may cause increased regulation and oversight. If stringent rules get imposed, it may dampen all enthusiasm for meme coins. It will limit their potential to grow.
Sustainability of the memecoins
Memecoin’s sustainability depends on the community supporting them. They thrive on some collective enthusiasm and follower engagement. Creating a strong and active community can be challenging. With the evolution of memes and their trends, the interest of the community in any particular meme coin may fall.
Sustaining speed of memecoins
Even after these challenges, it would be quite premature to dismiss them outright of memecoins. The landscape of crypto is evolving constantly. You should not underestimate the power of online communities. Memecoins captured a new investor’s generation imagination. It is drawn to their playful and irreverent nature. Also, a few memecoins have begun exploring real-world partnerships and utility for establishing a foundation beyond the factor of a meme. Maintaining a balance between their origins that are meme-inspired and establishing a strong value foundation is the reason to sustain their speed.
Memecoins’ future is uncertain
Memecoins have already captured the enthusiasm and attention of many investors. But their sustainability depends on addressing main challenges like community engagement, intrinsic value, and regulatory scrutiny. If memecoins are capable of adapting and evolving beyond their first hype, they may have the chance of carving out a lasting place in the erratic DeFi ecosystem.
Bottom line
The congestion actually points to a huge issue with the blockchain. It is the processing speed. Currently, it is capable of handling almost seven to 10 transactions each second in comparison to MasterCard claiming the ability to process 5,000 each second. To become an alternate currency in the true sense, Bitcoin must pick up the speed soon. Also, memecoins are the recent trend in the cryptocurrency market. You need to see if they can keep up this hype and continue breaking charts in this industry.