Sara Gherghelas, a blockchain research analyst at DappRadar, has shed light on how the lower barrier of entry associated with memecoins may have sparked the adoption of the crypto asset class. Here are the most important points from her explanation:
1. Memecoins, which are cryptocurrencies inspired by memes and internet culture, have gained popularity due to their low cost and accessibility. Unlike traditional cryptocurrencies like Bitcoin, which can be expensive to purchase, memecoins can be bought for a few cents or even fractions of a cent.
2. The low barrier of entry associated with memecoins has made them attractive to a wider audience, including younger generations who may not have the financial means to invest in traditional assets. This has led to increased adoption of cryptocurrencies as a whole, as more people become familiar with the concept of buying and holding digital assets.
3. While memecoins may not have the same level of legitimacy or long-term value as established cryptocurrencies, they have played a role in introducing new users to the world of crypto. As Gherghelas notes, “memecoins are a gateway drug to the crypto world.”
In summary, Sara Gherghelas’ explanation highlights how memecoins have helped to lower the barrier of entry to the crypto asset class, making it more accessible to a wider audience. While memecoins may not be the most legitimate or valuable cryptocurrencies, they have played a role in introducing new users to the world of crypto and sparking increased adoption of digital assets.