Pseudonymous cryptocurrency trader Vapor highlighted the growing prominence of meme coins in the digital asset space, asserting that they have become a force that cannot be ignored.
What Happened: Vapor took to X (formerly Twitter) to point out several advantages of meme coins over other popular crypto investment options. They are:
- Simpler than on-chain Ponzi schemes.
- More sustainable than pool2 farms.
- More liquid than NFTs.
- Safer than DeFi due to the absence of smart contract risks.
Meme coins also do not suffer from inflation or insider dumping through SAFTs (Simple Agreement for Future Tokens) like low float, high fully diluted value (FDV) new coins.
Vapor also suggests that meme coins provide better odds of winning compared to real-life lotteries or sports betting. As a result, they are absorbing liquidity and mindshare from various other investment venues in the cryptocurrency space.
Why It Matters: The crypto trader foresees that by the top of the current market cycle, at least three meme coins will surpass a market capitalization of $100 billion each. This forecast highlights the potential for meme coins to reach unprecedented levels of growth and adoption.
Looking back to a February 2024 Benzinga Twitter poll, readers voted on which meme coins they aremost bullish on.
GME Coin topped the list, followed by Shiba Inu SHIB/USD, Dogecoin DOGE/USD and Pepe PEPE/USD took the third and fourth spot.
What's Next: The influence of meme coins and Bitcoin as an institutional asset class are topics expected to be thoroughly explored at Benzinga's upcoming Future of Digital Assets event on Nov. 19.
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Image: Shutterstock
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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