May 30, 2024 12:05
Andrew Kang of Mechanism Capital, a crypto venture fund, thinks meme coins have evolved and shouldn’t be considered lowly. In a post on X, Kang argues that meme coins are no longer a “last resort” investment but an emerging sector constantly attracting millions of investors. Investors Should Change Strategy? If anything, the analyst thinks, top meme coins like BONK, HONK, and others may spearhead the next market surge. For this reason, and considering the potential of meme coins, investors, the analyst said, should consider adapting their strategies or risk “dying.” Another observer on X endorsed this observation. Replying to the post, the analyst said meme coins have been driving the market for months. Top meme coins like PEPE and others from Solana and Ethereum layer-2 platforms have increased. Related Reading: Crypto Expert Says Market Has Begun A Macro Bullish Expansion What This Means For Bitcoin And Altcoin Prices The fact that meme coin prices are defying gravity and cryptocurrencies are concurrently rallying suggests that they are no longer reliable indicators for calling tops. In the past, whenever there was a pivotal expansion of meme coin prices, most analysts interpreted the move as a signal that the crypto rally might end. However, this is rapidly changing. In this cycle, the analyst said meme coins are resilient and that there is an unconventional altcoin rotation, which means the landscape is changing. Meme Coins On Fire: Traders Raking Millions From PEPE, WIF While there are doubts about the sustainability of meme coins, considering they mostly lack utility and are speculative, top tokens, especially PEPE, outperform Bitcoin and Ethereum. Recently, PEPE soared to register fresh all-time highs, printing new crypto millionaires. Lookonchain data shows that after purchasing 6.1 million WIF for $5,879 in December 2023, one trader now holds $23.7 million worth of the coin. With this return, the trader posted an impressive ROI of 1,197x. The trader is not the only one. Another recently sold all their WIF holdings for $2 million worth of SOL. Lookonchain data notes that the trader has also profited from BONK and Boden. Platforms are also realizing the importance of tokens like BONK or HONK. Since they are speculative and without complex roadmaps, they attract new investors keen on exploring crypto and the multiple platforms in the space. Related Reading: Time To Stack Stellar (XLM)? Analyst Calls For Epic 500% Price Breakout Aware of the potential of this industry, the Avalanche Foundation recently launched the Memecoin Rush program. Accompanying their announcement, Eric Kang, BD Manager at Ava Labs, said meme coins have “become a cornerstone of Web3, representing the uniqueness and interests of diverse crypto communities.” Feature image from Canva, chart form TradingView
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