The recent event of Bitcoin breaking its all-time high has encouraged investors to put their profits into alternative crypto assets.
According to the data derived from CoinMarketCap, Dogwifhat(WIF), a recent popular memecoin is the leading returner holding a market capitalization of more than $1 billion.
Some celebrities always talk about memecoins which always remain in the limelight.
Memecoins have been outperforming since the beginning of this year. On November 6, Dogecoin (DOGE) went up over 22%, and at the same time, Shiba Inu (SHIB) gained 8%. There are various reasons for the event and some of them are discussed below.
Source: The CoinMarketCap
Liquidity Rotation
Liquidity Rotation in cryptocurrency generally refers to moving investment from one crypto to another. The recent event of Bitcoin breaking its all-time high has encouraged investors to put their profits into alternative crypto assets. And the majority of them are reportedly investing in meme coins. This liquidity rotation has led various meme coins such as PEPE, Doge Killer, DOGE, and others to witness a significant gain.
Memecoin Excitement
The graph of meme coins has always been captivating and the enormous price surges have also attracted a group of new investors. This event eventually helped to create a snowball effect resulting in excitement in the market. This led some more investors to put their money into meme coins.
Altcoin Season
This season and the events hovering around this can be referred to as an Altcoin Season when crypto assets other than the largest cryptocurrency attract momentum and list new highs. As digging into the history, this type of season always comes with a positive effect on meme coins and investors don’t miss a chance to grab this opportunity.
Celebrity endorsements helping memecoin
Celebrities can make anything popular in minutes by endorsing them under their name on their social media platform. A similar pattern can be witnessed in the matter of memecoins. Some celebrities always talk about memecoins which always remain in the limelight.
Elon Musk, Snoop Dogg, Gene Simmons, and Mark Cuban are always on the side of Dogecoin. At the same time, Lil Yachty can be seen inclined towards CryptoZoo. The co-founder of Ethereum, Vitalik Buterin mostly talks about Shiba Inu.
Some of the effects that celebrity endorsements list over meme coins are enhanced visibility, increased prices, gaining the attention of new investors, growth in the community, and being always in the mainstream media.
Some memecoins that outperformed this year
According to the data derived from CoinMarketCap in July this year, WIF, a recent popular memecoin was the leading returner holding a market capitalization of more than $1 billion. It has also gained over 1,300%. At the same time, Pepe, a meme frog token is the next who has performed well gaining about over 800%.
Floki, a utility token of the Floki ecosystem gained 418% making it one more popular choice among traders. Some obvious coins outperforming this year are Dogecoin and Shiba Inu.
