Reading time: ~ 2 m
Experts told whether comic cryptocurrencies will be able to maintain active growth dynamics in the next year and named the risks of investing in such assets
Over the past year, the popularity of “meme” tokens has grown significantly on the crypto market. The Dogecoin cryptocurrency, created back in 2013, received a “second wind” thanks to the mentions of Elon Musk, after which a large number of new similar tokens appeared on the market, such as Shiba Inu, Floki Inu, Dogelon Mars and others.
The high interest in “meme” tokens may be related to the profitability they bring. For example, Shiba Inu has risen in price by 246,153,746% since the beginning of the year. The price of Floki Inu has risen by 9185% since the altcoin’s inception in June, while the value of Dogelon Mars has increased by 2233% since April. In November, Dogecoin and Shiba Inu were among the ten largest cryptocurrencies in terms of capitalization for some time. Now the coins occupy 12th and 13th places, respectively.
Experts from RBC-Crypto explained what the market for “meme” cryptocurrencies expects next year and whether the sector can maintain the growth dynamics that has been observed over the past 12 months.
Dependence on the general trend
The sector of “meme” cryptocurrencies is fueled only by mentions and almost entirely depends on citations in the media and social networks, explained Nikita Zuborev, senior analyst at Bestchange.ru. According to him, the dynamics of “meme” tokens depends to a large extent on the interest in the market as a whole, and this, in turn, is associated with the current trend.
“In other words, interest in this speculative story will continue, but only if the market does not go into long-term stagnation, which is so actively predicted for it today. The growth will be shown primarily by projects that are already popular at the moment, they have a wider audience and a higher citation index, ”the analyst noted.
During a correction, such as now, there is no point in buying “meme” tokens, Zuborev said. In his opinion, when the correctional trend is exited, capital often flows from the “meme” tokens into more fundamental coins, which leads to an even greater decrease in comic cryptocurrencies. The rapid rise in prices for “meme” cryptocurrencies begins after the end of the active growth phase of bitcoin, Zuborev explained.
“Such a cyclical nature of the market has been repeatedly noted earlier, and so far there is no reason to revise such a model,” the analyst added.
How “meme” tokens are getting more expensive
When choosing promising coins, non-professional market participants often look at the value of the currency and the percentage of its growth, said Vladimir Gorbunov, co-founder of Crypterium. According to him, organizations issuing such tokens saturate them with volumes and increase turnover.
“This is a separate and profitable business. And it brings mega-popularity and super profits. Then the stages of hysteria begin, associated with growth, fall, rollback. I strongly advise against participating in trading with such coins, because this is an increased risk, ”the expert explained.
The majority of ordinary users who take part in the “promotion” of tokens, as a result, become “cannon fodder” in these constant ups and downs, Gorbunov argues.
The main danger
The main danger of buying “meme” tokens is that such cryptocurrencies are not useful, says Anton Kravchenko, CEO of Xena Financial Systems. In his opinion, the price of such tokens is provided only by the fact that they are bought in order to make money on the “hype”. Because of this, there is a great risk of losing all the money invested at any time, the expert added.
“To create a“ memorial ”token, you don’t need any special costs, you don’t need to build a business,” said Kravchenko.
The co-founder of Crypterium does not recommend buying “meme” tokens. According to him, investing in such cryptocurrencies carries an extremely high risk and does not have any guarantees that the funds will be saved.
#Cannon #meat #market #happen #meme #tokens
