cryptofamily

Why are memecoins so popular and is it possible that we are really in for a "memecoin supercycle"?

Right now, hundreds of memes are being born whose capitalization marks will soon exceed a billion. People buy memes at any stage of their journey and get life changing cases, due to their huge volatility and the phase of the market in which people greedily buy everything they see.

For an example, let's look at the chart of Tick Tock Squirrel (https://dexscreener.com/solana/gzdvsyajtfkutmaxcqtwbpkh1rsqt8vkfgjwdg1f62u8), which showed a correction of over 90% after each new peak. In this case, the old holders keep their positions and do not fix losses, especially if we are talking about a small position size.

The rise of memecoins is indeed fascinating, with their extreme volatility attracting both risk-takers and trend followers. The "memecoin supercycle" theory is gaining traction as more and more meme-based cryptocurrencies hit the market. It's crucial for investors to tread carefully and be aware of the risks associated with such investments, especially considering the significant corrections many of these coins experience.