Yahoo Finance Crypto Prices Surge — Could These 4 Meme Coins Make You a Pretty Penny?
Following the Securities and Exchange Commission’s (SEC) long-awaited approvals of Spot Bitcoin exchange traded funds (ETFs) on Jan. 11, crypto prices have been surging. But whether this renewed enthusiasm for the space will be a tide that lifts all boats for meme coins remains to be seen. And while there seems to be a pickup in interest in these coins, it’s not clear the mania will be sustained.
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“Altcoin season often follows Bitcoin bull markets as individuals and groups launch new token projects to attract speculative investors who want to ride Bitcoin’s coattails for quick gains,” said David Waugh, lead analyst for Coinbits. He added, however, that while some alternative cryptocurrencies have seen sudden and significant price increases, investors should keep in mind that only three altcoins — XRP, Dogecoin, and the BNB token — have ever reached new all-time highs a few years out from their initial peak.
Despite the seemingly increased interest in the space, several experts say “not so fast.” One of the byproducts of more Bitcoin ETFs coming to the market might potentially mean an increase in regulation in the space, putting the days of meme coins behind us.
“Flashy token mechanics and ‘being early’ often draws in eager investors looking for a quick ’10x,’ however the trend of U.S. enforcement and crackdowns will continue to increase as more ETFs are brought online as these are merely money printing schemes and are not to be commingled with public markets,” said Aaron Rafferty, co-founder of StandardDAO.
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Meme Coins Are Highly Speculative
And then, of course, it’s worth emphasizing that many experts liken investing in meme coins to gambling in a casino. Therefore, the practice should be approached with caution.
Usually, you see meme coins doing really well after Ethereum and Bitcoin make big moves. That money from the majors tends to recycle further down the risk curve. Then, that cash gets channelled into meme coins such as DOGE, PEPE, BONK and WIF — among many, many others, said Brian D. Evans, CEO and founder of BDE Ventures.
“Most of these meme coins tend to be very flash-in-the-pan, rising fast and then basically going to zero,” he said. “But some end up reaching escape velocity, obviously, and they can run really, really hard.”
Against this backdrop, a few meme coins have seen price upswings recently. And, as CoinMarketCap reported, “As the broader digital asset market cap bounced nearly 4% on the news, meme coins saw an even stronger 6.8% pop to reach a $21.9 billion valuation.”
Following are some of the aforementioned meme coins (data from Coingecko, as of Jan. 12):
1. Pepe
Past 30 days: 0.6% increase.
Past day: 0.4% increase.
According to Coinpedia, “Pepe coin is currently among the top meme coins you could diversify with, signaling as a potential best crypto investment this year.”
2. Dogwifhat (WIF)
Price: $0.22.
Past 30 days: 5474.7% increase.
Past day: 3.9% decrease.
According to FinBold, citing CoinMarketCap data, over $165 million worth of WIF was traded on Jan. 11 — a 387% increase from the previous day.
Per Austin Alexander, co-founder of LayerTwo Labs, the fact that WIF has gone way past a $200 million in market capitalization “is funny in itself.”
“And this is a draw to people, investing $20 in a coin about a dog with a hat and laughing about it online. That’s the essence of it all,” he said.
3. Dogecoin
Past 30 days: 10.4% decrease,
Past day: 2.5% decrease,
According to Coinpedia, Dogecoin price is currently on a bearish trail, yet is expected to fight for dominance this year amid the crypto price surge.
Not everyone agrees with this premise, however. While everyone knows Dogecoin, especially since it was touted by Elon Musk, things might look different this year.
“As we’re looking at 2024, what’s it doing besides getting Twitter likes? It’s all fun and games until you realize there’s no real payoff,” said Shawn Carpenter, chairman and CEO of StockAlarm.
4. BONK
Past 30 days: 42.4% increase.
Past day: 14.3% decrease.
BONK is “the pioneer meme coin on the Solana blockchain,” and has “solidified its presence, boasting a substantial community and market capitalization,” according to Coinpedia.
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This article originally appeared on GOBankingRates.com: Crypto Prices Surge — Could These 4 Meme Coins Make You a Pretty Penny?
