Why Memecoins Attract Many Investors?

Investors Prefer Cheap Tokens

Instead of having to spend $60K to own one BTC, you can spend just $1 to own thousands, even hundreds of thousands of tokens of a memecoin. Memecoins often have extremely low prices, with many zeros after the decimal point, leading many people to mistakenly believe that the coin is “cheap” without realizing that the project’s market cap may be too high compared to the market.

The main reason is that memecoins often have a massive or infinite token supply. For example, Shiba Inu (SHIB) has a total supply of up to 1 quadrillion tokens, while DOGE has no maximum supply and has already circulated more than 100 billion tokens. However, since memecoins often do not have a token burning mechanism, this massive supply tends to keep their prices relatively low.