Are Memecoins Set to Take Over?

10.10.24 02:29 AM By Stormrake

Meme Coins: The High-Risk, High-Reward Play for This Bull Run

The cryptocurrency world is gearing up for another bull run, and while many will focus on blue-chip tokens or regular altcoins, meme coins may be the answer to a perplexing puzzle of how to capture the elusive 100x gains. Often dismissed as speculative jokes, meme coins have proven their staying power and ability to deliver astronomical returns. In this article, we’ll dive into why meme coins, despite their volatility, offer some of the biggest opportunities in the market, and how to navigate the risks that come with them.

DOGE: The Undisputed OG of Meme Coins

Dogecoin (DOGE) stands as the pioneer in the meme coin space, continuing to dominate with an unmatched level of community backing. It wasn’t just hype that propelled DOGE to a peak market cap of $97 billion during the last bull run; it was the collective belief of a loyal fanbase who embraced its fun, light-hearted nature, along with strong support from Elon Musk, who frequently 'promoted' the project. Though it started as a joke, DOGE's market presence is no laughing matter, and it remains a bellwether for the broader meme coin sector.

Doge Marketcap Performance since 2021, Source: https://www.coingecko.com/en/coins/dogecoin

The Big Dog and The Frog

WIF and PEPE, though only 11 months and 17 months old respectively, have already solidified their place at the top of the meme coin space, and ranking 28th and 39th in the entire cryptocurrency market. These aren’t just new entrants; they’ve quickly risen to become some of the largest-cap meme coins across the SOL and ETH ecosystems. With WIF currently boasting a $2.6 billion market cap and PEPE at $4.4 billion, they’ve captured the attention of investors and are now seen as staples in the meme coin world.

Despite their massive growth, the potential upside is still enormous. If WIF were to reach a $25 billion market cap, its price would jump to $25.19, and at $50 billion, it could surge to $50.38. These kinds of gains show that even the larger meme coins still offer retail investors significant profit opportunities as the market heats up. WIF and PEPE may not have the history of DOGE, but they’ve earned their place as leaders in this space, proving that meme coins can break into the big leagues just as quickly as they appear.

The Harsh Reality: Most Meme Coins Will Go to Zero

Meme coins are high-risk, high-reward. While very few will thrive, the overwhelming majority—99.9%—will likely fail. Only the strongest coins, usually the first movers on their respective blockchains, stand a chance of surviving long-term. The key to navigating this space is recognizing that meme coins are speculative investments, and only a small number will emerge from the frenzy with lasting value.

Memecoin Gains: A New Hope for Retail Investors

Meme coins represent one of the last opportunities for retail investors to experience the massive returns that are now much harder to capture in traditional altcoins. With early altcoin seed rounds dominated by VCs and institutional investors, retail investors are left with fewer chances for 100x or 1000x gains. Meme coins, driven by viral social media trends and FOMO (fear of missing out), still offer retail investors a chance to get in early and potentially reap huge profits.

Spotting a Winning Meme Coin

Given the risky nature of meme coins, how do you identify the ones with potential? A few characteristics can help you spot a winner:

Strong community: Successful meme coins have dedicated, passionate communities that believe in the coin, often beyond its actual utility.
Memes and rhetoric that stick: The coin needs to have a funny or relatable narrative - that captures attention, like DOGE or the current hype of $MOODENG, based off the viral baby hippo in Thailand..
Social media buzz: Meme coins that dominate platforms like Twitter, Reddit, or TikTok often have the best chance of exploding in value. But this is also where the most rug pulls occur.

Social Media Presence: Where Hype Meets Caution

Meme coins thrive on social media, but not all hype is created equal. Recently, celebrities and influencers like Andrew Tate with $DADDY and Iggy Azalea with $MOMMY have launched their own meme coins. During the 2021 bull run, countless rappers, actors, and social media figures jumped on the meme coin trend, aggressively promoting tokens to inflate prices before selling off, often leaving their followers with significant losses. This pump-and-dump cycle is unfortunately common, so even when you see a meme coin gaining traction online, it’s essential to approach with caution.

TikTok, in particular, was notorious for this kind of shilling during the 2021 bull run, with influencers pushing coins like Shiba Inu (SHIB) and claiming it could reach $0.10. However, if SHIB were to hit $0.10, it would be valued at $39.4 trillion USD, making it the most valuable asset in history—an impossible target. While social media is a powerful tool for meme coin adoption, always approach these trends with scepticism.

Conclusion: Meme Coins, A High-Risk Bet with High Potential

Meme coins can be rocket fuel for a crypto portfolio, but understand that with the potential for increased upside comes a sharp increase in volatility and risk. While 99.9% of meme coins may go to zero, the few that survive could bring face-melting gains, making them an important part of any speculative crypto portfolio.

If you're unsure whether to allocate to memecoins, consult your dedicated Stormrake Crypto Broker. In a space driven by community, social media, and hype, meme coins are where retail investors can still capture lightning in a bottle. But as always in crypto—proceed with caution, do your research, and be ready for a volatile journey.

Written by Alexandar Artis

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