Andrew Kang of Mechanism Capital, a crypto venture fund, thinks meme coins have evolved and shouldn’t be considered low. In a after On
Investors need to change their strategy?
The analyst thinks top meme coins like BONK, HONK and others could lead the next market wave. For this reason, and given the potential of meme coins, investors should, the analyst said, consider adjusting their strategies or risk ‘dying’.
Another observer on X seconded this observation. Commenting on the post, the analyst said that meme coins have been driving the market for months. Top meme coins such as PEPE and others from Solana and Ethereum Layer-2 platforms have increased.
Related reading
The fact that meme coin prices are defying gravity and that cryptocurrencies are rising at the same time suggests that they are no longer reliable indicators for calling top numbers.
In the past, whenever there was a crucial surge in meme coin prices, most analysts interpreted this move as a signal that the crypto rally might end.
However, this is changing quickly. In this cycle, the analyst said meme coins are resilient and there is an unconventional altcoin rotation happening, meaning the landscape is changing.
Meme coins on fire: Traders rake in millions from PEPE, WIF
While there are doubts about the sustainability of meme coins as they tend to have little utility and are speculative, top tokens, especially PEPE, are outperforming Bitcoin and Ethereum. Recently, PEPE soared to new all-time highs, squeezing new crypto millionaires.
Data from Lookonchain shows that after purchasing 6.1 million WIF for $5,879 in December 2023, one trader now owns $23.7 million worth of coin. With this return, the trader achieved an impressive ROI of 1,197x.
The trader is not alone. Another recently sold all his WIF holdings to SOL for $2 million. Look at chain facts notes that the trader has also benefited from BONK and Boden.
Platforms are also realizing the importance of tokens such as BONK or HONK. Because they are speculative and lack complex roadmaps, they attract new investors eager to explore crypto and the many platforms in the space.
Related reading
Recognizing the potential of this industry, the Avalanche Foundation recently launched the Memecoin Rush program. Upon their announcement, Eric Kang, BD Manager at Ava Labs, said: said meme coins have become “a cornerstone of Web3, representing the unique character and interests of diverse crypto communities.”
Feature image from Canva, TradingView chart form