Avalanche-based meme coins rally by 200% as the Foundation announces its plan to accumulate them
- The Avalanche Foundation announced that they would be purchasing select Avalanche-based meme coins to create a collection.
- The Foundation claimed meme coins "represent the crypto communities' shared interest".
- As a result, meme coins on the network, such as Coq Inu, HUSKY and RPG & others, shot up by as much as 250% in a day.
The meme coin market is witnessing a sudden surge in interest, with the likes of Solana and Avalanche joining the hype. While meme coins were mostly limited to either being an L1 or an ERC-20 token, over the past few weeks, such crypto assets have appeared on other chains as well, with Avalanche now issuing support for them.
Avalanche Foundation set to back meme coins
Avalanche Foundation took to X, formerly Twitter, to make a rather unexpected statement regarding the scum of the crypto market - meme coins. While Dogecoin and Shiba Inu stood as two of the most criticized assets in the history of the crypto market, a wave of support for these coins, generally considered to be scams, is washing over the lack of utility that meme coins offer.
Last year, the Avalanche Foundation launched Culture Catalyst, a program aimed at empowering creators, sparking innovation, and propelling the adoption of blockchains. This initiative seeks to better position Avalanche to cultivate and support the many new forms of creativity,…
— Avalanche (@avax) December 29, 2023
The Foundation stated that meme coins, often inspired by internet culture and humor, go beyond mere utility assets; they represent the collective spirit and shared interests of diverse crypto communities. In line with this opinion, the AVAX parent company announced,
"The Avalanche Foundation intends to start using Culture Catalyst to recognize and encourage the culture and fun symbolized by meme coins by purchasing select Avalanche-based meme coins to create a collection. This move complements the Avalanche Foundation's ongoing engagement across the Avalanche ecosystem, including NFTs, RWAs, and other types of crypto assets, broadening its portfolio to embrace a complete spectrum of possibilities.
The post further noted that apart from fundamental factors, the selection process would include an analysis of the "overall social sentiment" of the asset as well. Naturally, the post triggered a rise in the Avalanche meme coin community.
Meme coins on the rise
Following the announcement from Avalanche Foundation, meme coins on the chain rallied by more than 100%, with some even reaching highs of 200% in the span of 24 hours. This included the likes of Red Ponzi Gud (RPG) rising by 216%, Team Rocket (ROCKET) shooting up by 107%, Husky Avax (HUSKY) marking an 80% increase, and Coq Inu (COQ) growing by more than 30%.
These tokens are expected to continue down this path unless they are brought to a halt, which, by the looks of Avalanche's comments, does not seem to be the market's intention.
Author
Aaryamann Shrivastava
FXStreet
Aaryamann Shrivastava is a Cryptocurrency journalist and market analyst with over 1,000 articles under his name. Graduated with an Honours in Journalism, he has been part of the crypto industry for more than a year now.
