When the cryptocurrency market’s major assets stagnate, many investors turn to memecoins, risky assets, but which seem to have proven themselves in terms of profitability.
Do memecoins guarantee big returns every time?
Memecoins have coast. From time to time they renew and from time to time their prices suddenly go up to immediately go down while sometimes they follow with incredible hype. Although over time an investment in a memecoin is not necessarily synonymous with success, pump and dump waves often multiply on the prices of these cryptocurrencies allowing large gains to their investors.
If we consider some of the most popular memecoins on the market such as Shiba Inu, Dogecoin, Tamadoge, Baby Doge Coin or even Floki Inu, the results speak for themselves, with wallets that have generated millionaire earnings from a “minor” investment.
The prize for the best portfolio goes, according to Nansen, to an address that managed to exceed 2.3 million in earnings with an investment of $450 in memecoins.
The 200 best-performing portfolios spent $160,000 on investments for jaw-dropping returns, amounting to $82 million ($410,000 average per portfolio). Sums that seem within the reach of ordinary investors if we take into account the amount that may have been placed on memecoins. Indeed, on average, these portfolios spent “only” $800 on their financial investments, with little intermediate trading but rather a secure holding strategy.
For their part, the more “active” investors, i.e. those more accustomed to seeking gains through trading, have certainly made greater profits, but at the risk of a much higher capital and by multiplying their trades. A strategy that, unlike the first, is not necessarily within the reach of those entering the cryptocurrency sector. Furthermore, this second strategy – while also successful for some traders – has a lower return on investment (ROI) than the first in the case of these memecoin wallets.
On the other hand, the gains have been made on the same assets, especially the major memecoins of the market that have experienced significant bullish waves such as the SHIB token, DOGE or even TAMA and Floki Inu.
What crypto memes for 2023?
It is also not surprising that many of these crypto assets that have produced new millionaires are featured on the top recommended lists by crypto analysts.
- Tamadoge is particularly recommended very regularly, for its significant trading volumes which denote real activity around the token but also for the development of a useful ecosystem, which is quite surprising for a memecoin.
- Dogecoin cannot be forgotten either, as it is the memecoin with the largest market capitalization, and which regularly receives the support of Elon Musk, in fact.
- Shiba Inu is no different, with the imminent arrival of Shibarium, the token burn that could increase with the growing utility of the token and Ethereum whales are still important to keep buying pressure on the token.
Of course, one of the main defining characteristics of a memecoin should not be ignored: the main use of an asset of this type is speculation. A speculation that can sometimes lead to huge gains but also to significant disappointments. Unfortunately, high returns often come with higher risks.
However, to maintain the hype around tokens, project developers are very often forced to give an initial utility to the token or to provide it with one along the way. An aspect that could renew the sector of these cryptocurrencies.
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