Solana's Hot New Memecoin - What is POPCAT?

Meme coins have carved out a niche, captivating investors with their blend of humor and speculative potential. Among the latest to capture the market's imagination is Popcat, a meme coin based on the viral Popcat meme on the Solana blockchain.

Popcat ($POPCAT) has rapidly ascended in value, ballooning from an initial market cap of $200,000 to $600 million. This surge ranks Popcat as the third most popular meme coin on Solana, trailing only behind Bonk and Dogwifhat.

Popcat yearly price chart (Source: CoinMarketCap)

Viral Origins: From Meme to Cryptocurrency

The Popcat meme originated in October 2020, featuring a cat named 'Oatmeal' in two distinct facial expressions—one with a closed mouth and the other wide open in an 'O' shape. Creating a popping sound through the toggling of these images gained Oatmeal a cult following on the internet. 

The meme's popularity transcended social platforms, evolving into a digital currency on the Solana blockchain, exemplifying the profound influence of internet culture on the cryptocurrency sector.

Popcat Tokenomics

The structure of Popcat's tokenomics is straightforward, avoiding complex mechanisms like transaction fees or taxes, which can often deter potential investors. 

The total supply of 979,974,293 $POPCAT tokens was initially issued, with 93.1% being put into the liquidity pool and then burnt to affirm the project's decentralized ethos. The remaining 6.9% of the supply is secured in a multi-signature wallet, reserved for strategic uses such as facilitating exchange listings, building blockchain bridges, and enhancing liquidity—measures aimed at ensuring the token's sustainability and appeal.

Community Dynamics and Challenges

Despite the token's rapid rise, it faced significant hurdles. By Christmas 2022, $POPCAT had reached a $50 million market cap—an impressive feat for a community-based token without substantial institutional backing or centralized exchange listings. 

However, tensions flared when the original developer attempted to sell 3,000 NFTs at 1.5 SOL each, sparking a dispute with the community. This conflict was eventually resolved when the community purchased the token update authority from the developer for $35,000 in USDC. 

Though initially perceived as a bullish development, this led to a price decline, with $POPCAT stabilizing around a $5 million market cap as the memecoin market entered a bear phase.

During the downturn, the resilience of the Popcat community became evident. Moderators, content creators, and enthusiastic members played a pivotal role in sustaining the project, laying a solid foundation for future recovery. 

Their efforts paid off recently, with $POPCAT witnessing a remarkable 3600% price increase over the year, spurred by renewed interest and the broader "Cat coin" narrative within the Solana ecosystem.

Investment Risks and Considerations

Potential investors should be aware of the inherent risks associated with meme coins like Popcat. The coin's value is primarily driven by social media influence and community engagement, lacking intrinsic economic value or utility. 

This can lead to high volatility and market unpredictability. Additionally, the absence of an official connection to the original Popcat meme and associated game could pose challenges to its long-term legitimacy and market presence.