Memecoins
Exclusive: 36.8% of investors now have investments in memecoin!
- Q1 and Q2 performance dictates why investors are allocating more to memecoins – Survey
- PEPE, WIF and BONK prices could reach new highs, but respondents expect BTC to do the same
After speaking to 557 respondents from different parts of the world, AMBCrypto exclusive inquiry revealed that 53.7% of traders, investors and analysts would choose memecoins over Bitcoin [BTC]. And yet, a significant number of people believe that Bitcoin will reach the $100,000 level before the end of 2024. The result of this study may not surprise active market participants, and the reasons are obvious.
Are memecoins the hedge of this cycle?
First, the price of Bitcoin increased by 53.32% on a year-over-year basis (YTD). However, this is nothing compared to the performance of memecoins – especially those based on by Solana [SOL] blockchain.
For example, dogwifhat’s [WIF] the value has jumped 1,768% this year, while Bonk [BONK] recorded an increase of 123%. Another notable memecoin was PÉPÉ. Despite Ethereum [ETH] lagging behavior, this memecoin saw gains of 945%.
However, the interviewees did not say this out of desire. Instead, AMBCrypto’s investigation found that they put their money where their mouth is. Specifically, 36.8% of all respondents allocated part of their portfolio to memecoins.
Another 25.5% did so for AI-themed tokens, with the DeFi and GameFi sectors finding a place among the holdings of 25.5% and 15.4% of overall respondents. This, despite the start of the second quarter (Q1) of the year at a slower pace compared to the first quarter.
At the start of the second quarter, memecoins lost a good portion of their gains from the first quarter. However, the resurgence of GameStop (GME) stock has put prices back on an uptrend. This was one of the reasons why PEPE seemed exceed his absolute record almost every week.
Source: TradingView
Bitcoin is still in the conversation
Regardless of the bullish conviction around memecoins, 65.5% of respondents owned Bitcoin – a sign that the coin remains a significant bet, despite the buzz of the narrative.
Furthermore, AMBCrypto report also revealed that most believe BTC could rise by 80% by December 2024. If this happens, then the price of Bitcoin could be worth $121,953 by the end of the year.
But where does that leave memecoins? Beyond the report, AMBCrypto looked at the number of holders and sentiment around some of these frog and dog themed tokens.
According to data In Santiment, the number of PEPE holders in February was less than 160,000. At press time, this number had increased to 238,000.
Source: Santiment
A nearly 50% surge in less than three months could be proof that the memecoin supercycle may not be stopping anytime soon. If this were the case, other altcoins with real utility could run out of liquidity.
Finally, AMBCrypto report found the emergence of SocialFi to be something to watch. For example, platforms like Friend.tech and Fantasy.Top have accumulated millions of dollars in trading volume.
Realistic or not, here is Market capitalization of PEPE in terms of BTC
Despite the notable increase in monetary flows, memecoins could continue to attract more market participants than any other sector of the market. Nonetheless, this does not imply that ETH will continue to lag or that BTC will fail to reach $100,000.