Mike Novogratz Says Meme Coins Are Good for Economy

Cover Image: U.Today

When Dogecoin (DOGE) emerged in 2013, few envisioned it as the inspiration for a new asset class known as meme coins. From Dogecoin to Shiba Inu (SHIB), Floki, PEPE, and countless others, Mike Novogratz believes these assets have become an integral part of the economy and are here to stay.

Growing Relevance of Meme Coins

Novogratz's recent commentary on meme coins reflects their evolving status in the crypto ecosystem. As the founder and CEO of Galaxy Digital, he notes that these assets have become a cornerstone of the crypto economy.

He highlights the financial success experienced by investors, including his son-in-law, through meme coin investments. According to Novogratz, investing in meme coins requires assessing an object's potential to evoke humor.

Memecoins: A Cornerstone of Crypto

Novogratz points to dogwifhat (WIF), a Solana-based meme coin with a market capitalization exceeding $3 billion. Galaxy Digital estimates the meme coin market to be close to $60 billion, with Dogecoin, Shiba Inu, and PEPE leading the pack.

Ongoing Transformation

Meme coins are no longer merely regarded as fun tokens. They are undergoing a pivotal transformation towards coins with unique utilities.

Shiba Inu exemplifies this shift. It has introduced numerous features, including payment capabilities, a Domain Name Service, and a Layer-2 scaling solution (Shibarium).

Floki is also rapidly evolving, with the launch of TokenFi last year positioning it to capture a significant portion of the tokenization market. The establishment of meme coins has rendered a cross-ecosystem collapse unlikely.