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Uzone.id – The world of cryptocurrency has witnessed a surprising surge in the popularity of meme coins. These digital tokens are often inspired by internet jokes and pop culture references and have seen significant price increases and captured the attention of investors, especially younger generations.
Dogecoin, the granddaddy of meme coins, paved the way, but others like Shiba Inu coins and Floki Inu coins are also on track to make impressive gains. More than just technology, the rise of meme coins is fueled by the power of social media communities, celebrity endorsements, and the inherent fun factor.
However, the future of meme coins remains uncertain. Their value is highly volatile, and some experts warn they lack the underlying utility of established cryptocurrencies. Despite the skepticism, the rise of meme coins undeniably represents a fascinating chapter in the ever-evolving story of cryptocurrency.
Recently, the results of a survey by a global crypto media, AMBCrypto, involving 557 respondents from various parts of the world, showed that 53.7% of traders, investors, and analysts prefer meme coins to Bitcoin.
Survey respondents not only stated their preferences, but also allocated part of their portfolios to meme coins inspired by memes and other viral online images.
As many as 36.8% of respondents have invested in meme coins. In addition, 25.5% invested in AI-themed tokens, and the DeFi and GameFi sectors attracted 25.5% and 15.4% of respondents, respectively.
Responding to the survey, Reku Crypto Analyst, Fahmi Almuttaqin said that the popularity of meme coins is indeed inevitable.
“Meme coins or often referred to as memecoins are one of the sectors in crypto assets that are growing significantly. Not only its volatility can be utilized to optimize returns, but also its presence based on current trends. Among them, memecoins that utilize the name and brand of the former president of the United States, for example MAGA (TRUMP) and SUPER TRUMP (STRUMP) have also attracted the attention of investors and recorded an increase in ownership recently,” said Fahmi.
In terms of market performance, memecoins also show quite competitive performance compared to other crypto assets.
“For example, while the price of Bitcoin has increased by 53.32% Year-to-Date (YTD), the increase is not comparable to the performance of memecoins, especially those based on the Solana (SOL) blockchain. For example, the value of dogwifhat (WIF) has soared to 1,768% this year, while Bonk (BONK) has recorded an increase of 123%. Another meme coin that is worth noting is PEPE, which recorded a 945% increase even though Ethereum’s (ETH) performance is rather slow,” continued Fahmi.
In addition, at the time the survey was published, there was an increase in the number of PEPE memecoin owners from less than 160,000 in February to 238,000 on May 31.
“This almost 50% increase in less than three months suggests that the memecoin super cycle may not be ending anytime soon,” he added.
Meme Coin vs Bitcoin
Although the preference for meme coins shows an upward trend, 65.5% of respondents still own Bitcoin. This shows that Bitcoin remains the prima donna amid the growing narrative.
The survey also revealed that most respondents believe Bitcoin could rise by 80% by December 2024, meaning the price of Bitcoin could reach $ 121,953 by the end of 2024.
“Bitcoin as the crypto asset with the largest capitalization is still the reference for the movement of other coins. Moreover, the increasing adoption of Bitcoin by various global institutions also reflects the strengthening of the global community consensus on Bitcoin. In addition, the increasing adoption of these institutions does not increase market optimism regarding its price outlook, especially if institutional adoption then develops on a larger scale,” Fahmi explained.
Regarding the overall condition of the crypto market, Fahmi continued, the market can be said to be in the early stages of a bullish cycle.
“The economic growth of the United States, which is seen to be slowing down with GDP growth falling from 3.4% in the fourth quarter of 2023 to 1.3% in the first quarter of 2024, could potentially be a positive perception for crypto investors. This is because the challenges of economic growth due to the increasingly real high interest rate situation can accelerate the Fed to take a policy of lowering interest rates, which of course if it happens will have a positive impact on the crypto market,” said Fahmi.
“The existing situation could potentially be a strong enough catalyst to support the crypto market at its current price level. Later, there is a prospect that this situation will become a solid foundation while waiting for a positive catalyst that is strong enough to move the market. Considering the cycle, the current crypto market can be said to be in the early stages of a bullish cycle,” he continued.
In the current conditions, investors are advised to continue to adjust their strategies according to their respective investment or trading goals.
“For investors looking for high volatility, memecoin can be an option to take advantage of the price movement margin. So that trading and monitoring the market more routinely can be done in order to take advantage of the momentum appropriately. However, for beginners or long-term investors, the DCA strategy or dollar cost averaging is also still quite ideal to run,” concluded Fahmi.
The DCA strategy or investing routinely every certain period with a certain nominal can provide investors with an attractive average price.
“The average purchase price now does not need to be calculated manually. Because investors can monitor it in the Portfolio Analysis feature available in Reku. In this feature, investors can also monitor the holding period, profit/loss calendar, to the accumulation of profits from the entire portfolio. That way, investors can be more informed about their investment performance and more confident in making decisions,” said Fahmi.
Meme Coins: Why Are They More Appealing Than Bitcoin?
The cryptocurrency market has grown rapidly in recent years, with Bitcoin being the leading cryptocurrency. However, in recent times, meme coins, such as Dogecoin and Shiba Inu, have attracted significant attention and popularity.
While Bitcoin and meme coins are both cryptocurrencies, there are some fundamental differences that make meme coins more appealing to some investors. Here are some of the reasons:
1. More Affordable Price
Bitcoin has a much higher price tag than meme coins. One Bitcoin is currently trading for around Rp 500 million, while Dogecoin and Shiba Inu are only worth a few rupiah per coin. This makes meme coins more accessible to retail investors with limited capital.
2. Higher Potential for Value Increase
Because of their low price, meme coins have a much higher potential for value increase than Bitcoin. In a short period of time, Dogecoin and Shiba Inu have experienced tremendous increases in value, attracting many investors looking to make big profits.
3. More Active Community
Meme coins generally have a more active and vibrant community than Bitcoin. These communities often engage in various activities and campaigns to increase the popularity of their meme coins. This can increase positive sentiment and attract more investors.
4. Trends and Virality
Meme coins are often connected to trends and virality on social media. This can significantly increase the popularity and demand for meme coins, as in the case of Dogecoin and Shiba Inu.
5. Portfolio Diversification
Meme coins can be an attractive option to diversify a cryptocurrency portfolio. With a more affordable price and high potential for value appreciation, meme coins can provide different profit opportunities than Bitcoin.
However, it is important to remember that meme coins also carry high risks. Their high volatility can cause the price of meme coins to drop drastically in a short period of time. Investors should be careful and do their research before investing in meme coins.
In conclusion, meme coins offer several advantages over Bitcoin, such as a more affordable price, higher potential for value appreciation, a more active community, and a connection to trends and virality. However, meme coins also carry high risks. Investors should consider these factors before deciding to invest in meme coins.
