Indeed, the investment craze surrounding Memecoins is currently making a notable impact, propelled by intentional advertising efforts and the prevailing market climate within the cryptocurrency sector.
Which Memecoins are the most important to follow? What traits do they possess? For the ecosystem, are they wise or unwise investments? Here are all the specifics about memecoin.
PEPE, AIDOGE, AICODE, AND OGGY are the four most prevalent Memecoins on the market
Regarding the key Memecoins to keep an eye on in the market, we can observe that PEPE has developed into a significant indicator, with investors attentively monitoring its peaks and troughs.
Many people are speculating about whether PEPE could have a second wave of rise following the recent drop in memecoin pricing.
Similar to SHIB, which reached its highest point ever in May 2021 before falling sharply to double its previous peak in value in October 2021, is the stock’s subsequent rise and fall.
Should PEPE be able to mimic SHIB’s path, big investors are already entering the market.
AIDOGE has succeeded in generating a positive spiral in coin prices despite the deflation of trading volume and high chain fees. The item “Burn AIDOGE to earn AICODE + Stake AICODE to earn ARB” contributed to the price increase.
However, both AIDOGE and AICODE have suffered as a result of the recent decline in memecoin pricing. Therefore, it’s crucial to keep an eye on whether the imminent release of “AIFI” by AIDOGE can provide the project the push it needs.
Contrarily, Oggy Inu gained notoriety through his association and AMA with BabyDoge. His collaboration with the Messi Fan Club also helped to raise his profile.
He was able to survive the initial wave of memecoin drops thanks to his strong project resources and public relations abilities.
Oggy Inu has the ability to catch up to or maybe exceed BabyDoge in the future. A transaction charge of up to 10% applies to OGGY on the chain, and Bitget currently provides the finest OGGY liquidity on the network and is tax-free.
Imagine the cryptocurrency Pepe The Frog inspired
In terms of PEPE, recent days of extreme volatility suggest that it may be going through a correction. Users should pay particular attention to numerous things in such scenarios.
The fact that some meme coins can maintain their wealth effect through celebrity endorsement, continued product development, and community interaction, for example, is one of their more encouraging long-term developments.
Examples include memecoins like SHIB, which is creating layer 2 networks, and DOGE, which Elon Musk has praised. Therefore, if PEPE possesses these advantageous traits, we may want to think about implementing a medium- to long-term trading strategy.
Regarding the possibilities for short-term trading, however, we can observe that Bitget has just started offering futures contracts for PEPE tokens, enabling users to trade in both directions using contracts.
Futures traders may be able to generate profitable returns in either direction by monitoring changes in PEPE token prices and carefully examining fundamentals and technical indicators.
Finally, we observe that the PEPE community rapidly grew throughout the rise, and trading zeal drove gas prices on the ETH chain to about 80. The FOMO mentality in the community kept the currency’s price rising.
However, the initial excitement has subsided, and users who intend to participate in PEPE trading should take the degree of community activity into account when choosing their investments.
What impact do Memecoins have on the cryptocurrency ecosystem?
Both intentional marketing and the overall market climate in the cryptocurrency industry are driving the current investing craze in memecoins.
A lack of trustworthy assets to draw long-term investors and excessive speculation both hinder market formation.
Dogecoin and Shiba Inu had excellent success and made it to the top 10 projects by market valuation in the previous bullish market.
Meme coins have low entry hurdles in terms of technology and investment because they are designed around fun and community.
In actuality, they have the ability to make money quickly and rise quickly in market value.
Meme currencies provide entertainment, social media influence, and rapid earnings. Liquidity issues in the bitcoin market prevent internal finance and outside investment. The industry competes for funds. Lacking a compelling story, Bitcoin and Ethereum’s differences drive the market.
Memecoins have received short-term financing. Memecoins use social media to attract buyers but are unsustainable. Traditional stock markets call these investments “fad stocks.” Hysteria, conjecture, or trends boost their appeal, but it rapidly passes.
Referring to the waves of SHIB and DOGE memes in 2020, there is a chance that a sharp market decline may catch retail investors before the trend ends as whales continue to convert their produced memecoin into conventional currencies.
How closely do meme coins resemble the ethos of the cryptocurrency sector?
Decentralization is, as we all know, the core component of cryptocurrencies. Anyone can develop their own cryptocurrency, and most meme coins are based on Internet memes and cultural trends.
Meme coins are essentially social tokens produced by people for other people.
Online communities or individuals with a common interest or sense of humor frequently create and promote them.
Meme coins have a strong social component that contributes to their popularity and uptake since they foster a sense of belonging, encourage involvement, and foster a shared experience among their owners.
Memecoins are also distributed with a sizable total quantity and incredibly cheap token pricing. The original goal was to address the rising cost of bitcoin, which makes it challenging for regular people to purchase even one unit.
Regular users can acquire a sizable quantity using meme tokens. The idea of an accessible purchasing price and equitable access across the community embodies the decentralization, equality, and transparency values found in the bitcoin industry.
Therefore, memecoin like DOGE with 4.91 million ownership addresses, SHIB with 1.303 million ownership addresses, and PEPE with 114,000 ownership addresses have a considerably larger user base than other blue-chip tokens despite price surges and speculative users.
Last but not least, these fundamental meme currencies are transferring from Web3 to Web2 user groups, developing a distinctive Web3 narrative and drawing in more mainstream users.
The “mainstreaming” of cryptocurrencies is further encouraged by this. Thus, it is impossible to claim that meme coins are against the fundamental principles of cryptocurrencies.
Being aware of the hazards associated with memecoins, including pump-and-dump schemes and rug-pulling
Developers often include closed-source contracts, proxy contract methods, tradable logic with pause functionality (which poses Rug Pull risks), and impose excessive sales fees that hinder token sales in new anonymous meme coins. These contractual flaws are commonly observed in such projects.
Traders may suffer losses as a result of these weaknesses. Therefore, it is advised to trade and spot contract risks related to new meme currencies early on using portfolios that integrate advanced detection skills.
Along with contract weaknesses, certain memecoin issuers concentrate a sizable portion of their chips in a single EOA (Externally Owned Account) address or spread them across a number of addresses under their control, which increases the danger of short-term dumping.
As a result, exercising extreme caution and conducting thorough due diligence is crucial when trading Memecoins, particularly those that have been recently distributed.
How can the congestion brought on by memecoins on platforms like Bitcoin and Ethereum be fixed?
Before attempting to address the issue of Memecoin-related transaction clogs in platforms like Bitcoin and Ethereum, one must first determine whether the issue really requires solving.
Layer 2 offers a ready-made answer for how to handle network congestion. By reducing the size of the underlying blockchain network, Layer 2 increases throughput and performance.
It is sufficient for the underlying blockchain to compute evidence for transactions delivered to smart contracts, to verify Layer 2 network activity, and to store the original, unexecuted transaction data as call data.
In other words, the cost per transaction is decreased because the blockchain no longer needs to carry out as many computing processes or store as much transaction data on layer 2.
It is important to keep in mind that Ethereum’s own congestion may be advantageous while deciding whether or not to address network congestion.
In fact, with the activation of EIP-1559, higher gas prices typically cause a higher base rate and more Ethereum to be burned.
Because of this, rising gas prices cause Ethereum to deflate more quickly, which boosts the value of the currency.