The crypto market hosted unbelievable price movements last week and at the beginning of this week. Bitcoin‘s sharp decline after surpassing its previous all-time high (ATH) value brought along many questions. While all this was happening, meme coins, drawing strength from Bitcoin‘s rise, became the center of attention across the entire market. Analysts did not refer to this period as either a Bitcoin or an altcoin season. Instead, analysts named this period the meme coin season.
Understanding Meme Coins
Speaking of meme coins, these are coins that emerge based on a situation related to a meme or trend popular on the internet. They may appear solely to revive a meme, often without any real-world application. The process aims to enable investors or users to hold meme coins and make a profit.
As mentioned, meme coins generally do not have a real use case. However, some have been seen to offer solutions to issues like high gas fees and transaction speed. Leadership in meme coins is found in dog-themed coins like Dogecoin and Shiba Inu.
Over the past year, there has been a noticeable increase in the popularity of meme coins. Looking at the current market situation, it wouldn’t be wrong to say that meme coins are dominating due to the incredible price movements that have occurred.
The Role and Future of Meme Coins in Portfolios
As of today, meme coins constitute 2.19% of the total crypto market, which translates to $53.27 billion compared to the total market value of $2.49 trillion. This shows that meme coins hold a small share of the overall crypto market, yet investors have realized significant profits.
While Dogecoin‘s price has increased by more than 90% in the last few days, Shiba Inu has seen an increase of over 200%. Alongside these two, meme coins like Pepe Coin, Bonk, and dogwifhat have also reached ATH values during this period.
During this time, there was also a 3000% increase in the weekly trading volume of meme coins. Pepe Coin experienced a 600% increase in about a month, while dogwifhat showed growth of over 800%.
Considering all these factors, it’s evident that investors’ interest can shift towards meme coins, leading to diversification in portfolios. Nevertheless, investors should remember that meme coins are generally created as a joke.
