cryptocoin.com As we have reported, PEPE, which has been on the rise in recent days, made many investors happy. With this new memecoin, with the start of fast trades in the market, traders are also researching new altcoin projects! So, what do the experts say about the subject? Here are the details…
Cryptocurrency traders are looking for the next PEPE! So which altcoin will go in this direction?
As you know, many new meme coin projects have been added to the crypto money market in a short time. While some of them appeared as PEPE, Chad Coin (CHAD), Shib Original Vision (SOV), they delighted their investors with huge price increases. According to experts, although these gains are short-term, investors who quickly evaluated the opportunities made big profits. Meme coins, on the other hand, have become increasingly relevant with the popularity of projects influenced by an internet meme, PEPE, CHAD, and SOV. The shift of capital from Bitcoin and altcoins to meme coins catalyzes price rallies in such projects.
Despite the huge gains, meme coins are a highly controversial coin category because of the risk they entail. Cole, a crypto expert and market maker at Eigen Protocol, describes meme coins as “microballoons.” The micro bubble is described as a group of coins that carries extraordinary risk compared to other projects in the overall market. The words of the expert are as follows:
Micro-bubbles like the ongoing meme coin craze seem like they either end with the broader market rugging to zero or onboarding hoards of participants that start a bigger vapor bubble
— Cole (@cole0x) April 23, 2023
According to the expert name, the memecoin craze, micro-bubbles, ends either with the broader market crashing to zero or with heaps of participants initiating a larger bubble. Therefore, investors should follow closely.
Although PEPE, CHAD, SOV and other meme coins have brought huge gains for their holders, the market cap is relatively small compared to Dogecoin, Shiba Inu and others, which is reflected in the relatively small liquidity for investors of these coins.
On the other hand, according to crypto experts, meme coin investors are more risky than investors of other altcoin projects.
Experts’ thoughts on meme coin projects drew attention
According to experts, it is extremely important to remember that large rallies in Mem coins often mark the beginning or end of a crypto market trend. Before a bull run in crypto, there is usually a long period of consolidation. The end of a meme coin rally is usually followed by consolidation before the next uptrend in the crypto market.
However, experts warn investors to be careful when trading meme coins. An example of this is Binance CEO Changpeng Zhao, who warned investors on crypto Twitter not to pour capital into meme coin projects without due diligence.
Cryptocurrency expert and popular analyst Altcoin Sherpa, on the other hand, shares CZ’s views, arguing that meme coin price rallies are unsustainable despite the possibility of 500x gains in a short period of time.
meme coins are mostly rugs, do nothing productive, take 0 effort to make, and are mostly here for the biggest gamblers, degenerates, and plebs in the crypto space…
and yet they can do something that no 'normal' coin/ $BTC can do- they can go 500x+ in the matter of a few days pic.twitter.com/FCr0khTBEw
— Altcoin Sherpa (@AltcoinSherpa) April 18, 2023
According to the tweet quoted by the expert, meme coin projects generally gain price with 0 effort, so they are dangerous, but they have the potential to do 500x in a day compared to the rise of a Bitcoin.
New meme coins take the spotlight away from DOGE and SHIB
On the other hand, the emergence of meme coins, which, according to experts, earn up to 5x in a short time, has shifted the focus of investors away from projects with large market capitalizations such as Dogecoin and Shiba Inu. The two largest Shiba-Inu-themed cryptocurrencies in the ecosystem wiped out their gains last week and are currently struggling to recover from double-digit losses.
Major wallet investors on the Ethereum network have rounded up the Dogecoin killer Shiba Inu, signaling a bullish trend among investors. Akash Girimath, crypto analyst at FXStreet, believes SHIB is poised for a 20 percent gain. The expert argues that SHIB price is holding tightly to consolidation in a range stretching between $0.0000101 and $0.0000117. If the buying pressure continues and increases, the meme states that the coin will make a profit.
