Original text: Lawrence, Mars Finance
The recent surge in Meme coins has surprised many investors. Especially ACT and PNUT, two meme coins that surged hundreds of times after being listed on Binance, making many investors gain wealth overnight.
The performance of Meme coins always seems to achieve crazy gains amidst extreme market emotions and speculative enthusiasm. So, how to seize the next explosive opportunity in these highly volatile Meme currency markets and achieve gains similar to a hundredfold or even a thousandfold? This article will give you an in-depth analysis of how to use Binance’s listing dynamics, market sentiment, social platform popularity and other factors to discover the next explosive Meme coin.
Market drivers behind meme coins: liquidity, social media buzz and monetary policy
Behind the skyrocketing phenomenon of Meme coins is not entirely random fluctuations in the market. They are often rapidly fermented under specific market environments and social sentiments, thereby attracting capital inflows. We can understand the growth mechanism of Meme coins from the following aspects.
1. Macroeconomic impact of monetary policy
The easing of global monetary policies, especially the large-scale monetary stimulus by central banks after the epidemic, has led to an increase in liquidity in the market. In this case, investors with higher risk appetite began to look for high-risk assets with greater potential. Meme coins have become a focus area of capital inflows due to their low prices, low entry barriers and potential high returns.
In Binance’s latest article, officials explained in detail the reasons for the surge in Meme coins. In short, market inflows are a key factor driving the rise of Meme coins.
The increase in money supply not only promotes the growth of traditional assets, but also makes risky assets, especially Meme coins, another option for capital looking for high returns. A large amount of money poured into the Meme currency market, which not only drove their short-term price surges, but also further intensified the speculative atmosphere in the market.
2. Participation of retail investors and the role of social media
The rise of Meme coins is not only driven by market funds, but also cannot be separated from the extensive participation of retail investors and social media. A core feature of Meme coins is their "sociality". This asset usually generates extensive discussions on social platforms, especially on platforms such as Twitter and Reddit. The popularity of project discussions and user emotions can directly affect the currency. short-term price fluctuations.
KOL, the main promoter of ACT
For example, the surge in $ACT and $PNUT after being listed on Binance was largely driven by the buzz among social media KOLs. Since these projects themselves do not have fundamental advantages in the traditional sense, their prices are mostly driven by market sentiment and short-term funding. Therefore, the price fluctuations of Meme coins are highly dependent on market sentiment. Investors need to keep up with market dynamics and pay close attention to trend changes on social platforms.
3. High risks and high returns of low market capitalization assets
Unlike traditional mature assets, meme coins generally have low market caps, which makes their prices extremely volatile in the short term. Assets with low market capitalization are more likely to be favored by capital. Once a large amount of capital inflows, their prices can skyrocket in the short term. This kind of surge is usually accompanied by rapid outflows of funds, which also leads to the high instability of Meme coins. So, while Meme coins have enjoyed impressive gains, they also come with extremely high risks.
The impact of Binance’s listing: From announcement to the logic of the surge
As one of the world’s largest cryptocurrency exchanges, Binance’s impact on the listing of Meme coins cannot be underestimated. Binance’s listing is not only an endorsement of the project, but also a market verification of the project’s potential. Every time Binance announces that it will launch a certain project, it often triggers a crazy reaction in the market, and investors' attention and buying enthusiasm quickly increase. Specifically, Binance’s impact can be analyzed from the following aspects:
1. Market reaction triggered by listing announcement
According to Binance’s announcement, the prices of the two meme coins ACT and PNUT surged 42 times and 20 times respectively after the listing was announced. This surge not only reflects the market’s recognition of the liquidity and financial security of the Binance platform, but also means that Binance’s exposure has a profound impact on Meme coins. Binance’s liquidity, trading pairs, and global user base allow listed currencies to quickly attract large inflows of funds, thereby driving their prices to rise rapidly.
2. Impact on liquidity and trading volume
Binance’s listing not only increases the market liquidity of Meme coins, but also promotes the growth of its trading volume. Take $HIPPO as an example. After the coin was listed on Binance, it surged 4 times within 5 minutes, significantly exceeding investors’ expectations. The launch of the Binance platform provides these projects with a strong pipeline of capital inflows, and the platform's huge user base ensures continued attention and investment enthusiasm for the projects.
How to Pick Potential Meme Coins: Screening Criteria and Tools
1. Screen popular projects: starting from decentralized exchanges (DEX)
To tap the potential of meme coins, start by focusing on those coins that are currently active on decentralized exchanges (DEX).
Through tools such as @dexscreener, investors can view the currencies with larger increases and higher trading volumes within the current 24 hours. Through preliminary screening of these currencies, potential investment opportunities can be discovered. Specific screening criteria include:
Market cap greater than $15 million
24-hour trading volume greater than $5 million
Liquidity greater than $300,000
Time to market greater than 3 days
Tokens with market caps below $5 million are less secure and high risk for the long-term prospects of MEME Coin.
2. Use ToxiSolanaBot to analyze project potential
For each potential project, investors can use tools such as @ToxiSolanaBot for further screening.
This tool can help analyze the project's contract address, market sentiment and historical performance, providing investors with more comprehensive data support. When using this tool, investors need to pay attention to:
Select the contract address for analysis;
Choose the correct purchase amount and check the project's liquidity and market activity.
Through these analysis tools, investors can better evaluate whether a project has the potential to explode.
3. Social platform popularity analysis
Investors can also use social platforms to further verify the potential of a project. On Twitter, the popularity of a project’s discussions can often directly reflect the market’s attention to it. By viewing the project's official account and its related discussions, investors can get immediate feedback on the project. At the same time, using platforms such as @TweetScout_io, you can analyze the fan base and market influence of the project to help judge its potential.
Avoid risks and ensure sound investment
Although the skyrocketing popularity of Meme coins is full of temptations, its high risk cannot be ignored. Before investing funds, investors should diversify their investments reasonably and avoid concentrating all funds on one project. In addition to technical analysis and social platform analysis, investors also need to pay close attention to market dynamics, especially policy changes, platform announcements and other external factors that may affect the price of Meme coins.
1. Diversify investments and avoid single risks
It is recommended that investors diversify their assets and avoid concentrating all funds on a single asset, especially projects with low market value and insufficient liquidity. You can choose a diversified investment portfolio, including some mature projects and some potential stocks. By properly allocating funds, you can achieve higher returns while ensuring safety.
2. Track market trends and seize key opportunities
The volatility of the Meme currency market is very high, and investors need to track market dynamics from time to time, especially announcements, policy changes and other information from major exchanges. Listing announcements from exchanges such as Binance and the project’s social media performance may have a significant impact on the price. Maintaining sensitivity to the market and adjusting investment strategies in a timely manner are the keys to success.
Summary: Seize the trend and seize the opportunity
As a high-risk, high-return investment tool, Meme coin’s skyrocketing potential undoubtedly brings huge opportunities to investors. However, to seize the next 100-fold return project, investors must make full use of market liquidity, the popularity of social platforms, and the listing dynamics of exchanges such as Binance. Through scientific screening methods, technical analysis and social media popularity analysis, investors can increase the probability of discovering potential projects, thereby remaining invincible in this volatile market.
But just like all high-risk investments, the speculative nature of Meme coins is also accompanied by huge risks. While pursuing high returns, investors should also ensure reasonable risk control and asset allocation to avoid major losses due to excessive market fluctuations. .
(The above content is excerpted and reprinted with the authorization of partner MarsBit, original text link)
Statement: The article only represents the author's personal views and opinions, and does not represent the objective views and positions of the blockchain. All contents and opinions are for reference only and do not constitute investment advice. Investors should make their own decisions and transactions, and the author and Blockchain Client will not be held responsible for any direct or indirect losses caused by investors' transactions.
"Where is the next "100x Meme Coin"? "The secret knowledge of currency selection" is released. This article was first published on (Block Guest).
