Why this craze for memecoins?

Memecoins have been popular these days. These cryptocurrencies, created on the basis of jokes, now occupy a prominent place in the entire crypto market. But what are the reasons for this sudden craze for memecoins? Some answers in the following paragraphs.

Let’s start by understanding memecoins

The memecoin designates a cryptocurrency created on the basis of jokes. The name refers to the “internet meme”, an element or phenomenon taken up in a comic way on the web.

Dogecoin is the first born of this category of cryptocurrencies. The DOGE is a Doge-inspired meme featuring a Shiba Inu, a Japanese dog breed, as a mascot. Then there were the Shiba Inu, the Dogelon Mars and many more.

Important clarification: Memecoins are cryptocurrencies. So they work as such. Concretely, they are based on blockchain technology. Most of the time, they are designed on blockchains that use smart contracts like Ethereum.

Memecoins are also decentralized. In other words, they are neither controlled by a financial institution nor by the government. They differ from other cryptocurrencies by:

• how they are created;
• their use case.

Unlike bitcoin (BTC), programmed to have a number of available units to mine, memecoins could have billions of units in circulation. Thus, their supply is often very high (even unlimited).

Most of the time, memecoins also do not have a combustion or burn mechanism. This is why their value per unit is relatively low.

Why are memecoins so attractive?

Although criticized by some crypto companies (like Dogecoin), memecoins have become an integral part of the cryptosphere. They attract a large audience. Some investors even believe that these assets have the potential to revolutionize the crypto industry. Here are the reasons:

Memecoins are cheaper

Unlike cryptocurrencies (like bitcoin and ethereum), memecoins sell for reasonable prices.

Decryption:

• Crypto investors can get a large number of tokens by investing a small amount.
• Investment risks are reduced. If the price of memecoin increases, the gains will be substantial. Otherwise, the investor will not lose much.

Memecoins offer a high potential return

Granted, memecoins are highly volatile and speculative. Nevertheless, they guarantee a high potential return. Above all, they offer quick win opportunities and allow investors to make substantial profits.

Note : memecoins can experience significant price fluctuations due to the influence of media hype and market speculation.

Memecoins have a more playful character than classic cryptos

Memecoins are particularly attractive to young and new investors. They consider them as fun and entertaining investments rather than serious financial instruments. They therefore offer a less formal and more fun experience than traditional cryptocurrencies.

Craze for memecoins: What impacts on the crypto market?

The craze for memecoins impacts above all the perception of cryptocurrencies. But here again, opinions remain extremely divided. According to some crypto analysts, the memecoin craze is devaluing the crypto market in general. The reason is that these assets would distract attention from serious cryptocurrency projects. This could fuel distrust of the entire crypto ecosystem.

We must nevertheless admit one thing: the season of memecoins has boosted awareness of cryptocurrencies in general (and therefore their adoption). It even led to a spike in Bitcoin and Ethereum transaction fees. Analysts say this is due to an increase in Bitcoin activity involving BRC-20 transactions. About 50% of all Bitcoin transactions are linked to BRC-20 transactions.

Investing in memecoins in 2023: Good or bad idea?

Memecoins currently occupy a big place in the crypto market. Investing in this kind of cryptocurrency is therefore a good idea. It is indeed an investment that could be profitable thanks to the coins’ popularity.

That’s not all ! Memecoins are ideal for investors with shorter investment horizons. In any case, it’s not for nothing that memecoins have been setting the Bitcoin network on fire lately.

Be careful though! Memecoins are very volatile. Investing in it involves risk (just like any other crypto investment).

What are the memecoins to watch closely in 2023?

here is our top 3 memecoins to watch closely this year.

Dogecoin

Dogecoin stands out today as a real reference. This memecoin is interesting because of the fundamental value it has acquired in a short time. And unlike other memecoins, it is a good long-term investment.

Dogecoin (DOGE) is currently trading at $0.07 with a circulating supply of 139,366,576,383.705 DOGE. Its total market cap stands at $10,067,841,477.96.

The Pepe Coin (PEPE)

Pepecoin is a token bearing the image of Pepe The Frog. We have it created on the BRC-20 standard, which became popular thanks to Bitcoin Ordinals. Additionally, PEPE is backed by Binance. It currently has over 112,000 holders, up from just a few thousand a week ago.

PEPE’s current price is $0.00000161 as it nears the top 50 market caps. Its market cap is $631,164,000.

The AidDoge (AI)

The AidDoge is an AI-powered memecoin. It raised more than $7.5 million, surpassing half of its pre-sale. As the presale sold out over 50% of its available tokens, fundraising will definitely kick into high gear. It is therefore very likely that the presale will end by the end of the month.

The AiDoge is currently trading at $0.000,000,000,309,862, with a market capitalization of $54,194,942.

THE memecoin reviews remain very divided today. Bearers of hope and sources of revolution for some, they are also strongly criticized by others. Time will tell if this memecoin craze will persist for long.