The recent performance of meme coins has sparked a debate among crypto experts about whether they can maintain their popularity and achieve long-term growth without significant innovation.
What Happened: Meme coins have not performed as well as during the first quarter of the year.
| Cryptocurrency | Price | 24-hour performance | 7-day performance |
| Dogecoin DOGE/USD | $0.1375 | -6.7% | -13.5% |
| Shiba Inu SHIB/USD | $0.0000217 | -7.3% | -9.5% |
| Pepe PEPE/USD | $0.00001194 | -6.0% | -16.6% |
| Dogwifhat WIF/USD | $2.44 | -11.6% | -24.5% |
| Floki FLOKI/USD | $0.0002409 | -12.2% | -10.9% |
Economist and crypto trader Alex Krüger believes they will continue to struggle, stating that “the odds of a new memecoin succeeding by following the same old approach are very close to zero at this point.”
He emphasizes the need for “new mechanics,” citing the example of Notcoin NOT/USD, a meme coin with a unique deflationary mechanism.
Krüger also criticizes the reliance on “fair launches,” a method where tokens are distributed without a pre-sale, as a viable strategy for long-term success.
He suggests such approaches “only work under extraordinary conditions.”
Supporting Kruger’s view is a chart shared by Viktor, which depicts the performance of total market capitalization of the crypto industry.
This metric essentially represents the entire cryptocurrency market capitalization excluding the top 10 coins, serving as an indicator for altcoins.
The chart reveals a concerning trend – the current market position for altcoins closely mirrors that of October 2023 and April 2024, both periods marked by significant downturns.
Also Read: Altcoins Down 70% Against Bitcoin: Here’s Why They Just Can’t Get Going
TXMC offers a different perspective on the recent market sluggishness. He argues that the focus on a potential Bitcoin ETF as the sole driver of the late 2023 and early 2024 rally is misplaced.
TXMC highlights the synchronized rise of the Dow Jones during the same period, suggesting a broader market trend fueled by a “soft Treasury-Fed pivot” rather than an isolated crypto event.
He emphasizes the importance of considering traditional market indices to gain a more holistic understanding of price movements.
The traditional approach to launching meme coins is proving to be less effective, necessitating new mechanics and strategies. The broader altcoin market remains stagnant, reflecting the need for innovative solutions to drive growth.
What’s Next: For a deeper understanding of these trends and future predictions, Benzinga’s Future of Digital Assets event will be an essential forum for stakeholders in the crypto industry.
Read Next: Bitcoin’s Direction Ahead Of ‘Huge’ FOMC Meeting And Key CPI Data: Up, Down Or Sideways?
Image: Shutterstock
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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