While Bitcoin, Ethereum and other cryptocurrencies are soaring, memecoins seem to be “dormant” 😴. But don’t worry, there’s an explanation for this! Here are the 6 main reasons that explain this scenario:
📉 1️⃣ Money is Flowing into BTC and ETH
• Investors prefer “safer” assets such as $BTC and $ETH
• When money flows into BTC, it “sucks” liquidity out of memecoins.
💡 Tip: Keep an eye on the moment when BTC starts to “sideways”, as capital may migrate to memecoins, in the meantime forget about the Hype of#Memecoins
📉 2️⃣ Lack of Hype and Influencers
• Where's Elon Musk? 🤔 Without him, $DOGE and they don't get the same “boost” as before.
• No memecoin is leading the global narrative at the moment.
💡 Tip: If some big influencer starts talking about a new memecoin, the market might wake up!
📉 3️⃣ Lots of Supply, Little Demand
• Dozens of new memecoins emerge every day, and the public is tired of empty promises and rug pulls.
• Excess options divide investors’ capital.
💡 Tip: Don’t fall for the “fomo” of any memecoin. Research it and see if it has anything different!
📉 4️⃣ Memecoins Rise Last!
• In the 2021 cycle, DOGE and SHIB only exploded after BTC reached its top.
• Now BTC is rising, but memecoins usually “wake up” only at the end of the bull cycle.
💡 Tip: When BTC stabilizes, memecoins may have their “moment of glory”.
📉 5️⃣ Stricter Regulation
• Pressure from regulators is forcing exchanges to be more judicious when listing new memecoins.
• Without a listing on Binance or Coinbase, the hype of a memecoin is limited.
💡 Tip: Keep an eye out for new listings on Binance as this could be the trigger for a big appreciation.
📉 6️⃣ Lack of Liquidity for Speculation
• Small investors are cautious, avoiding memecoins that require high transaction fees.
• Many prefer to invest in stablecoins or “safer” assets like BTC and ETH.
💡 Tip: Wait for BTC to hit strong resistances. When it “stops”, money can migrate to memecoins!
🚀 Opportunity in Sight?
Memecoins may be “cooking” for a big explosion. In the last cycle, profit from BTC and ETH was redirected to memecoins. Will history repeat itself?
🔍 Focus Moment: Solid Projects First! 🔍
While the crypto market is experiencing a bullish phase, the best strategy is to prioritize solid projects such as Bitcoin (BTC), Ethereum (ETH) and other cryptos with strong fundamentals. These assets have greater security and liquidity, in addition to being the focus of large investors and institutions.
Memecoins can offer quick gains, but the risk of loss is much higher. If you want exposure to memecoins, do so in a controlled manner, using only a small portion of your capital. Protect your assets by investing in what has proven its value over time.
⚠️ Investing strategically is always more profitable than relying on luck!
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