Memecoins
Will the market experience a repeat of the 2021 Dogecoin and Meme Coin supercycle?
Crypto Analyst Altcoin Sherpa answered the question of whether or not the cryptocurrency market will witness a repeat of the meme coin supercycle that Dogecoin and other meme coins enjoyed in 2021. The analyst is optimistic that there would be a supercycle meme but not in the way many expect.
Will there be a repeat of the 2021 meme coin supercycle?
Altcoin Sherpa Mentioned in an X (Formerly Twitter) job that the meme coin supercycle will happen, but not in the way many think. The analyst believes the market will not experience another Shiba Inu-like running (SHIB) for these meme coins. Shiba Inu is known to have recorded a historic price increase of 46,000,000% during the 2021 Bull Run.
He explained that the main reason for such a belief is that the market is “too dispersed” and has not experienced the 2021-style surge since then, further suggesting that it may never happen again. Altcoin Sherpa he also mentioned that there is too many coins meme in the market, making it harder for a coin to skyrocket like Shiba Inu did.
Altcoin Sherpa added that attention is spread out everywhere and liquidity is not as concentrated as it was in 2021. He noted that this is why it is more of a pump of individual coins rather than these pumps happening from a “sector perspective.” The analyst’s theory is not limited to memes, as he believes the market will not witness many of these Solana, LUNA and Avalanche moves from any sector in the future.
What the Meme Coin Supercycle Will Look Like Now
Having established that the market is unlikely to see this kind of Shiba Inu rally again and only a few Dogwifhat (WIF) type rallies, Altcoin Sherpa He mentioned that coin traders are going to see “15 mid-caps doing really well and spreading out versus the very concentrated bets.” He explained that this means that 15 coins could see a 10x price gain while 3 coins would see a 50x-type rally. However, the analyst added that there will be a few outliers in his theory.
Altcoin Sherpa urged investors to continue to gain exposure to the meme coin sector, as he believes there will still be “big gains” in each of them. He noted that market participants could find a meme that fits every risk profile. He explained that Dogecoin and Shiba Inu are aimed at “big whales” since the larger meme coins have less room to move up.
The crypto analyst further stated that PEPE, Dogwifhat and BONK are also aimed at those with high liquidity but looking for more upside. In the meantime, he added that investors could also enter all mid-caps, with Altcoin Sherpa saying that a few of them will likely still reach multi-billion dollar market capitalizations.
Featured image created with Dall.E, chart by Tradingview.com