Why do Meme Tokens perform better than Altcoins?
Recently, Meme Token has performed very strongly, especially PEPE, whose market value has exceeded US$5.74 billion, and FDV has surpassed SEI, RNDR and other projects. So, why exactly is Meme Token worth investing in than Altcoin in this bull market?
1. Altcoin is overvalued
Many altcoins are already highly valued before being listed on exchanges. For example, WLD was valued at US$3 billion before going online, and its FDV was as high as US$28 billion on the day it went online, which was equivalent to OpenAI’s valuation at the time. Such a high market value leaves very limited room for growth for retail investors. Similarly, new coins such as Merl, the leader of Bitcoin Layer 2, also plummeted after being launched online.
2. Market Maker, VC, KOL, and project parties’ Pump & Dump
In addition to the previous DWF news, the Pump & Dump of VCs and project parties has always been a concern for everyone. Many VCs and project developers have experienced the last bear market and are worried that this bull market will end soon, so they want to turn their tokens into profits as soon as possible. Many project parties would rather launch several new projects quickly to make money, rather than slowly and carefully completing existing projects. For example, a VC said: "They require the project team to push the project from Idea to Bybit within 2 months." This VC has withdrawn from 5 projects this year. Note: Pump & Dump does not necessarily require the token to be fully unlocked. As long as the transaction has the relevant token, the project party can also lock in profits through the perpetual contract.
3. Token Unlocking
This is easy to understand. Unlocking means the supply increases, and the currency price naturally falls. For example, look at how Ethereum Layer 2 leader ARB fell from $2 to $1.
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