- First and second quarter performance determines why investors spend more on memecoins – Survey
- PEPE, WIF and BONK prices may reach new highs, but respondents expect BTC to do the same
After speaking to 557 respondents from different parts of the world, AMBCrypto’s exclusive research found that 53.7% of traders, investors and analysts would choose memecoins over Bitcoin. [BTC]. And yet, a significant number believe that Bitcoin will reach the $100,000 level before the end of 2024. The result of this study may not come as a surprise to active players in the market, and the reasons are obvious.
Are memecoins the cover of this cycle?
First, the price of Bitcoin has increased by 53.32% on a Year-To-Date (YTD) basis. However, that is nothing compared to the performance of memecoins – especially those based on Solana’s [SOL] blockchain.
For example dogwifhat’s [WIF] the value has risen by as much as 1,768% this year, while Bonk [BONK] registered an increase of 123%. Another notable memecoin is PEPE. Despite Ethereum [ETH] Due to lagging behavior, this memecoin registered a gain of 945%.
However, the respondents do not only say this out of desire. Instead, AMBCrypto’s research found that they are putting their money where their mouth is. Specifically, 36.8% of all respondents have allocated part of their portfolio to memecoins.
A further 25.5% have done so for AI-themed tokens, with the DeFi and GameFi sectors finding a place within the holdings of 25.5% and 15.4% of all respondents. This is despite the fact that the second quarter (Q1) of the year started at a slower pace than the first quarter.
As the second quarter began, memecoins lost a large portion of their first quarter gains. However, the resurgence of GameStop (GME) stock sent prices back into the uptrend. This was one of the reasons why PEPE seemed to surpass its all-time high almost every week.
Source: TradingView
Bitcoin is still in the conversation
Regardless of the positive sentiment surrounding memecoins, 65.5% of respondents owned Bitcoin – a sign that the coin remains a big bet despite the buzz.
Furthermore, AMBCrypto’s report also revealed that most believe BTC could rise 80% by December 2024. If this happens, Bitcoin’s price could be worth $121,953 by the end of the year.
Where does that leave memecoins though? In addition to the report, AMBCrypto looked at the number of holders and sentiment surrounding some of these frog and dog themed tokens.
According to facts of Santiment, the number of PEPE holders was less than 160,000 in February. However, at the time of writing, that number had risen to 238,000.
Source: Santiment
A nearly 50% increase in less than three months could be evidence that the memecoin super cycle may not end anytime soon. If this were the case, other altcoins with any practical use could no longer have liquidity.
Finally, AMBCrypto’s report found that the rise of SocialFi was something to watch out for. For example, platforms like Friend.tech and Fantasy.Top have built millions of dollars in trading volume.
Realistic or not, here is the market cap of PEPE in BTC terms
Despite the notable increase in funding flows, memecoins could continue to attract more market participants than any other sector in the market. Still, this does not mean that ETH would continue to lag or that BTC would fail to reach $100,000.