Memecoin is currently on an upward trajectory as the entire crypto market embarks on a bull run. However, Bloomberg highlights that the current pace of meme coins was similar to the level of the crypto bubble that burst two years ago. In any case, the market is wary of the possibility of a correction. However, if the bubble bursts, there will be a wave of crashes just like in 2021.
Meme coin craze raises concerns
According to Bloomberg, memecoin trading volume is currently at levels just before the last crypto bubble burst more than two years ago. The craze for meme coins in the digital asset market shows no signs of slowing down as investor traction grows. Meme coins such as Dogwifhat and Pepe have received much more attention than Bitcoin. This trend occurs despite the fact that these coins are among the most speculative and volatile cryptocurrencies. The trading volume of top meme coins, which often trade for pennies in dollar terms, reached about $80 billion in the last week, according to data collected by blockchain data firm Kaiko. This is the highest since October 2021.
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Cryptocurrency bubble burst in 2021
Currently, Memecoin is capitalizing on positive trends in the cryptocurrency industry and shows great growth potential. In the same vein, Bitcoin has also hit a new all-time high, increasing favorability among market participants. However, after hitting all-time highs in 2021, the crypto market experienced one of its scariest moments.
CNBC reported that the two largest digital currencies have lost three-quarters of their value in the year since Bitcoin peaked at about $68,000 and plummeted along with the riskiest tech companies. The industry's value fell from more than $3 trillion to about $900 billion. By the end of 2021, Ethereum had fallen over 23% to $3,769.70. Bitcoin also fell nearly 30% from its all-time high of $47,686.81.
Why are meme coins popular?
Investopedia defines the term “meme coin” as the name of a cryptocurrency based on a person, animal, character, work of art, or anything else that can be imitated. Most are light-hearted and fun, and supported by passionate online sellers and followers. Although some people find these coins interesting, they are volatile investments. Shiba Inu Coin rivals such as Pepe (PEPE), Floki (FLOKI), dogfight (WIF), and Grok (GROK) are aiming to send a rocket to the moon in 2024 due to growing need for cheaper investment options I am determined. .
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