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The Avalanche Foundation will use the Culture Catalyst program to support Memecoins created on the Avalanche network. This support comes amid massive growth of memecoins, with coins such as $PEPE and $BONK outperforming the market in 2023.
Avalanche also saw considerable growth in 2023, with its native token, $AVAX, gaining over 200%. AVAX is currently the top-ten largest cryptocurrency, with a market capitalization of $13.58 billion.
Avalanche Foundation to Support Memecoins
The Avalanche Foundation has set up the Culture Catalyst Program to support creators, enhance innovation, and expand the adoption of blockchain technology. The Foundation has focused much on identifying and supporting the role played by memecoins within the Web3 industry.
On December 29, the Avalanche Foundation announced it would support and invest in some memecoins created on the Avalanche blockchain. The support is part of an effort by the network to promote new forms of art, lifestyle habits, and cultural identity using blockchain technology.
The Culture Catalyst program commenced last year, aiming to empower creators and promote innovation around blockchain technology. The Avalanche network believes that meme coins have evolved from simply being used for speculative purposes to represent interest across the crypto industry.
“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,” the Foundation said.
The Avalanche Foundation has also said that the memecoins that qualify for this program will undergo a selection process. The selection is based on criteria such as the number of holders, liquidity requirements, project maturity date, social sentiment, and the transparency of the launch process.
The Growth of Memecoins
Memecoins have often faced criticism due to their volatile price action. A majority of memecoins lack utility and are traded solely for speculative purposes. This prevents these coins from holding on to their gains for long.
For instance, a token known as $BONK, created on Solana, snowballed towards the end of 2023 amid hype around the Solana Saga phone. However, $BONK is now down by 38% in just two weeks.
Avalanche-based memecoins are on an uptrend following the news. Red Ponzi Gud (RPG) is up 35% in the last 24 hours, according to CoinMarketCap. These memecoins could continue gains with the anticipated support from Avalanche.
