Cryptocurrency analysts note a capital rotation from major cryptocurrencies to meme coin projects as the market overheats. The top three cryptocurrencies by market cap are on the decline as meme coins grab the attention of individual traders. cryptocoin.com We have compiled the analyzes of the experts. Here are the reasons for the rotation…
Meme coin prices offer double-digit gains as BTC rally cools
A recent study conducted by an Australian crypto research agency in 22 countries revealed that there are more Dogecoin holders in the US than Bitcoin and Ethereum. The survey results show that the adoption of Dogecoin among investors and traders in the US is almost double the global average. However, the interest in meme coins is not new. Historically, when capital exits mainstream cryptocurrencies with large market capitalizations (Bitcoin, Ethereum and high-volume altcoins), the meme flows into coins, signaling a cooling off period for the ongoing bull run.
On this subject, crypto analyst and economist Alex Kruger says:
Shiba’s success tells you three things: 1-) With hard work and perseverance anything is possible 2-) People love dogs and memes 3-) Money chases anything that moves.
Dylan LeClair shares his concerns
In a recent tweet, 21stParadigm co-founder Dylan LeClair criticized traders attending meme coin rallies and shared their concerns:
Coinbase is constantly pushing me to add Shiba Inu on certain apps/platforms. I can imagine how many people would end up holding worthless meme coins because of targeted ads/marketing at the end of this. What a joke. Sad.
Shiba Inu owners exceed 800,000 overnight
With its massive rally, SHIB distributed 30,000 new wallets in a single day. Fueled by the DOGE and SHIB rivalry that began with the launch of the Shiba Inu in August 2020, more investors turned to dog coins. A mysterious address bought $3,400 worth of SHIB (in exchange for wrapped Ethereum WETH) at the time the meme coin was released, with over $1.55 billion in SHIB investment. Wallet continued to buy SHIB several times; The $3,400 purchase was the largest and the total wallet is now worth $5.63 billion.
It remains to be seen whether this whale decides to sell its holdings and whether the SHIB markets have sufficient liquidity to absorb the sale of this volume.
Meme coin rotation may be signaling the end of the bull season!
Less popular dog-themed cryptocurrencies FLOKI and SAMO have posted triple-digit gains of 125% and 113%, respectively, over the past 24 hours. Twitter analyst nicknamed LilMoonLambo has predicted that BTC’s peak of the year is approaching. The analyst sees a meme coin rally as an indication that the Bitcoin bull run is over.
Enjoy the peak BTC price of the year. Ditch everything and enjoy the rest of the year. bull run is over
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