- Memecoins have struggled to outpace their rivals by failing to establish themselves as a true store of value.
- Now, it seems they’re losing ground on other fronts as well.
As a seasoned crypto investor with memories of the Bitcoin boom and bust etched deep within my gray matter, I can’t help but feel a sense of deja vu when observing the current state of memecoins. While they once promised to bring laughter and excitement to the often stodgy world of digital assets, their struggle to establish themselves as anything more than a fleeting fad is increasingly evident.
Despite many coins experiencing a surge following Trump’s return to the White House, memecoins have found it difficult to match this momentum, fueling more discussions about their questionable long-term worth. Considering the performance of other altcoins, this perspective seems quite plausible.
Still, it may not be too late for a shift—memecoins have proven resilient before, thriving on community support and hype. The real question now is: can that same hype drive a shift in momentum, or are we witnessing the start of a trend where memecoins finally lose their appeal for good?
Largest memecoin may be losing its biggest asset
One way to rephrase this in a more natural and easy-to-read manner could be: “Dogecoin [DOGE] serves as an illuminating case study when examining the unpredictability of these digital assets. Although DOGE is often linked with the hype generated by high-profile endorsements, it appears to be gradually shedding its strongest attribute – the support it once received.
As a researcher studying the cryptocurrency market, I’ve observed that despite the existence of a government department named after it, the price fluctuations for this dog-themed coin have not shown significant growth as expected. In fact, the initial $1 price target appears to be eluding us more and more each day.
Is it possible that DOGE is reaching a pivotal stage, a time when its community transitions from being driven by hype to becoming a committed, forward-thinking group with a lasting vision?
At the moment, the evidence points strongly towards ‘No.’ A swift look at its price history reveals that it remains quite volatile and speculative. A single bearish candlestick can wipe out the profits accumulated over numerous bullish ones.
It’s challenging to imagine meme-coins surpassing traditional altcoins in market value given their current dominance, as they collectively hold a larger market cap compared to individual altcoins.
These coins are easy target of market manipulation
A recent analysis by AMBCrypto reveals that significant figures with substantial holdings are employing a traditional manipulation tactic to keep Dogecoin (DOGE) confined within its consolidation period, thereby hindering any potential breakthrough.
A key aspect to consider is the role of meme-based cryptocurrencies such as DOGE. They flourish due to strong community backing, however, paradoxically, this dependency often leads to dramatic fluctuations in their market prices.
For instance, consider PEPE. With a market capitalization of $9 billion, roughly “around half” of its assets are managed by large wallets, or whales, who control approximately 190 trillion tokens. These whales possess the ability to sway the market as they please, potentially influencing the market dynamics in their favor.
Source : IntoTheBlock
It’s particularly noteworthy that the size of their deals, be it purchases or sales, frequently reaches into the billions or even trillions, which is truly astonishing.
In this approach often used with memecoins, they purchase at reduced costs and resell for higher prices, trapping these digital currencies within a chaotic price fluctuation. This keeps the market in a perpetual state of turmoil and leaves individual investors feeling uneasy due to the consistent uncertainty.
Considering the circumstances, it seems optimistic to assume these coins will reach their highest points next year.
Read Dogecoin [DOGE] Price Prediction 2024-2025
It’s quite obvious: Besides no longer being considered practical use-cases, memecoins are facing challenges on various levels.
Powerful entities often control the market, limiting its full growth potential, whereas their inability to fully transform into a reliable form of value storage provides an opportunity for alternative cryptocurrencies to take over and become leading players.
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2024-12-16 12:07