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- 1 Looking at the current market situation of memecoins.
- 2 What are the new interests of the traders and what is the future of memecoins.
What are the new interests of the traders and what is the future of memecoins.
2021 was the year in which many new cryptocurrencies joined the digital market and wreaked havoc on the cryptocurrency exchange. But what came out as the surprise treat to crypto enthusiasts is the introduction of Memecoins in the cryptoworld.
Social media platforms like Instagram, Twitter and Reddit have largely contributed to the upbringing of meme coins. Cypto developers began introducing more and more meme coins which attracted a huge sum from people throughout the globe.
While the golden period of flourishing meme coins was short lived, celebrities like Elon Musk continue to support popular meme coins like Dogecoin. In the hopes of harvesting returns on a greater scale, and raising the market price of Dogecoin to $1, Musk kept on rallying about the long-term profit earning capacity of the currency, though this feat could not be achieved to this day.
With 2022 coming into play and blockchain currencies like Ethereum, Avalanche, Polygon, and Bitcoin witnessing the volatility of the crypto market, the season of meme coins was impacted with cold winters of low investment, negative returns and falling prices. By the fall of 2022, the front players of meme coin cryptocurrencies, that is, Shiba Inu, Dogecoin, Cheems saw a steep fall in their market capitalization and prices.
Present-Day Scenario of Meme coin
With PEPE coming into light since its launch in mid-April, the meme coin has seen market capitalization of over 580%. This feat is astonishing as very few cryptos could roll out profit at such a scale in a very brief period of time. The PEPECOIN is a cryptocurrency based on the ever-famous meme featuring a green frog named Pepe.
The staggering success story helped another crypto named Floki Inu (Floki) which saw 100x rise in market valuation. Being in an innovation zone, both of these cryptocurrencies were listed on a blockchain-based platform.
Many new memecoins, thus started trending on various crypto exchanges. Researchers and forecasting agencies look at this impromptu activity as a risky venture and suggest that the FLOKI and PEPE are tokens holding no token utility and will see a drastic downfall if investors took out their profits from the market.
What’s laughable to see is the maximum circulating supply of PEPE alone stands at 420,690,000,000,000 coins while the present circulation stands at 391,790,000,000,000 coins and still sees no signs of slowing down.
But like every market, every traded coin does not perform well even if the conditions seem favorable. Historically, when Dogecoins, Cheems and Shiba Inu were doing fantastic till the early 2022, current market has done no good whatsoever to these currencies. Even their current prices remain very low as compared to their targeted price.
Conclusion
Despite a good growth being witnessed by these newly trending meme coins, it is still questionable on their part as to how they will be going to perform in the coming days. The winter is still not over for the meme based cryptocurrencies and a positive remark for all the existing currencies is yet to be seen. While things might not look great at the moment, the volatility of these markets remains unpredictable and this uncertainty raises another question- How the new age trading system will take shape and how the world of cryptocurrency will evolve?
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
