The Avalanche Foundation is expanding its support of meme coins. This move could further increase the popularity of Avalanche, a low-fee, high-throughput blockchain and even support its original coin, AVAX.
Avalanche Foundation supports meme coins
On December 29 to X, the foundation said it would continue its Culture Catalyst initiative to encourage meme coin activity, including Real-World Assets (RWAs), Non-fungible Tokens (NFTs), and more. This campaign, they continue, aims to promote innovation and boost the adoption of blockchains by supporting the creation of “new forms of creativity, culture and lifestyle.”
The Avalanche Foundation believes that meme coins have carved out an important niche in crypto and represent the collective spirit and shared interests of diverse crypto communities. By recognizing and encouraging this culture, the foundation hopes to develop and expand the Avalanche ecosystem, attracting new users.
As they resume Culture Catalyst, the foundation will begin purchasing select Avalanche-based meme coins to create a collection. The selection process will be based on several critical criteria, including the number of holders, liquidity thresholds, project duration, fair launch principles and overall social sentiment.
This move is an important one for the Avalanche Foundation as it signals a growing recognition of meme coins’ potential to drive innovation and growth. This is because meme coins have become increasingly popular in recent years, often attracting large communities and generating significant trading volume. According to CoinMarketCap facts as of december 29, meme coins have a cumulative market cap of over $23 billion.
Will AVAX and COQ expand their profits in 2024?
The foundation’s support for meme coins could further boost Avalanche’s popularity as it will draw more attention to AVAX, a coin used to pay network fees. So far, AVAX remains in an uptrend, up nearly 400% from its October 2023 low. While there is a cooldown, buyers have the upper hand. With the rising demand caused by more meme coins being staked on Avalanche, AVAX prices are likely to float even higher.
One of the Avalanche-based meme coins, COQ, is among the top 10 most liquid. According to DEXTools facts, at the time of writing there are more than 34,000 COQ holders. As of December 29, Dogecoin (DOGE) is the largest and most valuable meme coin, with a market capitalization of over $13.2 billion. However, COQ’s launch and subsequent stellar performance saw it reach a market capitalization of $114 million.
Feature image from Canva, chart from TradingView
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