- Q1 and Q2 performances dictating why investors are allocating more to memecoins – Survey
PEPE, WIF, BONK prices might hit new highs, but respondents expect BTC to do the same
As a seasoned crypto investor with years of experience in the market, I’ve witnessed firsthand how the tides can shift rapidly. While memecoins have been the talk of the town lately, with their impressive Q1 and Q2 performances, I believe it’s crucial not to overlook Bitcoin [BTC].
Based on conversations with 557 individuals representing various regions, AMBCrypto’s unique poll unveiled that approximately half (53.7%) of the traders, investors, and experts prefer memecoins over Bitcoin [BTC]. However, a substantial portion anticipate Bitcoin will surpass $100,000 prior to 2024’s conclusion. This survey finding may not shock market insiders, given the underlying explanations.
Are memecoins this cycle’s hedge?
Initially, Bitcoin’s price has surged by 53.32% this year. Yet, this growth pales in comparison to the remarkable gains made by memcoins, particularly those built on the Solana [SOL] blockchain.
For example, the value of dogwifhat (WIF) has soared by an astounding 1,768% this year, and Bonk (BONK) experienced a substantial increase of 123%. Notably, PEPE, another popular memecoin, managed to achieve gains amounting to 945%, despite Ethereum‘s (ETH) underperformance.
The survey conducted by AMBCrypto revealed that rather than expressing a mere desire, 36.8% of the participants have actually invested a portion of their portfolio in memecoins.
Approximately one quarter of the respondents (25.5%) have invested in AI-themed tokens. The DeFi and GameFi sectors each accounted for the investments of around 25.5% and 15.4% of the total number of respondents, respectively. This was the case despite a more sluggish beginning to the second quarter (Q2) compared to the first quarter (Q1).
At the start of Q2, memecoins experienced significant losses, having given up much of their Q1 price increases. Yet, the rekindled popularity of GameStop (GME) stock caused a turnaround in prices, contributing to PEPE reaching new all-time highs nearly every week.
Bitcoin is still in the conversation
As an analyst, I’ve reviewed the survey responses and found that even with the widespread optimism surrounding memecoins, a significant majority (65.5%) of the participants reported owning Bitcoin. This indicates that, contrary to popular belief driven by current narratives, Bitcoin still holds a substantial investment appeal for many.
According to AMBCrypto’s findings, many people predict that Bitcoin’s value could increase by approximately 80% before the end of 2024. If this projection holds true, the price of a single Bitcoin could reach an astounding $121,953 by December 2024.
As an analyst, I would say: Based on the findings from the report, I pondered over the future prospects of meme coins. To delve deeper, I examined their holder numbers and public sentiments surrounding popular frog and dog-themed tokens.
Based on Santiment’s figures, there were under 160,000 PEPE holders in February. However, the current count now stands at over 238,000 as of this moment.
If the price of a memecoin experiences an approximately 50% increase within a two and a half month period, it could indicate that the memecoin bubble may persist further. Consequently, altcoins that offer practical applications might struggle with sufficient liquidity if this trend continues.
As a researcher, I’ve uncovered an intriguing development in the crypto space: the rise of SocialFi. Notable platforms such as Friend.tech and Fantasy.Top are raking in significant trading volumes, totaling in the millions.
Realistic or not, here’s PEPE’s market cap in BTC terms
Although there has been a significant increase in investments, memecoins may still draw in more market players than other sectors. However, this doesn’t necessarily mean that Ethereum will underperform or Bitcoin won’t reach $100,000.
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2024-06-02 18:15