The memecoin market has surged to a record $79 billion, sparking mixed reactions from industry leaders and investors. Some see the rally as a sign of growth and community engagement, while others warn it reflects deeper problems in the crypto ecosystem.
The sector rose sharply from $55 billion at the end of June to $72 billion in early July, eventually peaking at $79 billion. At the time of writing, the market cap has slightly dipped to $78.81 billion.
Capital Flow or Industry Setback?
Anthony Anzalone, CEO of the blockchain network Xion, criticized the memecoin boom, saying it damages the crypto industry’s reputation. He argued that the massive inflow of money into memecoins suggests capital has “nowhere better to flow.”
“For many builders, memecoins do a phenomenal job at destroying the reputational work put into legitimizing this industry,” Anzalone told Cointelegraph. He believes the rally does not reflect actual progress in blockchain use cases for everyday people.
Anzalone added that there appears to be an inverse correlation between the success of the crypto industry and memecoin popularity. To him, the surge shows investors are chasing speculative hype rather than real innovation.
Supporters See Growth and Maturity
Others in the crypto community disagree. S, the pseudonymous community lead of the Neiro memecoin, said memecoins are still the “most attractive” segment of crypto.
S highlighted projects like Pudgy Penguins, Floki, and Neiro, claiming they are evolving beyond jokes and starting to build real technology. “Memecoins are hot, marketable, and easy to understand,” S said, contrasting them with complex, venture capital-driven crypto projects.
According to S, memecoins are “crypto-native” and gain momentum quickly when market sentiment improves.
Memecoins Become Part of Crypto Culture
Petr Kozyakov, CEO of the crypto payments company Mercuryo, noted that memecoins have become an essential part of crypto culture. He pointed to the success of the recent PUMP token offering, which raised $500 million in minutes, as an example of strong retail interest.
Kozyakov said Bitcoin reaching new highs has also helped push the overall crypto market, including memecoins, into a more bullish mood.
“Whatever your view on these tokens, they have succeeded in gaining an army of loyal followers who greatly value participating in their journey,” Kozyakov told Cointelegraph.
The Debate Continues
The memecoin rally has left the crypto industry divided. Some believe it represents growth in community-driven projects, while others worry it signals a lack of focus on real-world applications. Despite the controversy, memecoins remain a dominant force in crypto markets for now.
