Twice within the current year, the market capitalization of memecoins saw a surge up to $116 billion, attracting the interest of daring investors seeking risks. Presently, with the market down 13% from those peaks, the enthusiasm has subsided, though not entirely.
Several standout performers continue to resist the prevailing trend. Notably, these coins possess more than just the “hype” factor working in their favor.
Strategic Shift in Whale Behavior
The memecoin market is teeming with well over a thousand coins, each touting rapid profit potential.
Since the inception of DOGE in 2013, the number of these tokens has exploded, with memes endorsed by celebrities grabbing the spotlight along the way.
Evidently, everyone is eager to join the bandwagon, yet the real influence still rests with the “saviors” or “accumulators” – the Whales, who persist in dominating the scene. The following chart vividly illustrates this.
CryptoCrypto has highlighted a significant change: in the case of OG memecoins, there has been a decline in the percentage of wallets holding 50% or more of the tokens. Take Dogwifhat (WIF), for instance – only 1.18% of wallets possess over $50K worth of WIF.
Meanwhile, SPX6900 is at the forefront, with 53.55% of its wallets containing $50K or more in SPX tokens. What’s intriguing is that this roster is brimming with coins that offer more than just meme appeal.
These emerging players, many of which are less than a year old, are causing ripples in the market.
Despite the recent deceleration in the market, coins like GIGA, PENGU, SPX6900, FARTCOIN, and TRUMP keep soaring, remaining steadfastly in the positive territory.
This aligns perfectly with the whale’s approach.
Whales are evidently making informed decisions, injecting funds into coins that are either fresh or have robust celebrity support, tactically influencing their market value and fueling the “hype” responsible for driving FOMO.
So, Should OG Memecoins Step Down?
It’s a valid query. The top 5 OG memecoins, based on market capitalization, are still a long way from reaching their “highly anticipated” milestones.
Consider DOGE, for instance – it is yet to breach the $1 threshold. In contrast, newer coins like FARTCOIN have surged by an astounding 1900%, surpassing the $1 mark within a mere 90 days of release.
What’s the cause of this contrast? Newer memecoins are leveraging what OGs lack – robust tokenomics. Although whales are still amassing older coins, the impact on prices remains subdued compared to the more recent contenders.
It ultimately boils down to strategy. While SHIB boasts a massive supply of 589.25 trillion coins, FARTCOIN has a restricted total supply of just 1 billion.
Limited supply paired with high demand forms a recipe for price appreciation – a trend observed in these newer coins. This explains why they are becoming the preferred option for short-term profits over the OGs.
It’s a noteworthy transition deserving close observation.