The total capitalization of all meme cryptocurrencies exceeds $20.5 billion, and the daily trading volumes are about $1.2 billion, Vladislav Antonov, financial analyst at BitRiver, told bitcoinlinux. The expert explained what meme tokens are, whether they are in demand and whether they can be taken seriously.
“The first meme cryptocurrency Dogecoin appeared back in 2013 as a joke, but then it received wide support from the community due to its cheapness and convenience for instant transfers,” Antonov specified.
According to him, the American billionaire Elon Musk played an important role in the fate of Dogecoin: he, as a fan of this cryptocurrency, does not miss the chance to promote it once again, mentioning it on social networks and using it in his companies.
“A lot of meme cryptocurrencies have emerged as competitors to Dogecoin. The most successful of them is Shiba Inu. It is named after the dog breed of the Dogecoin symbol and the Doge meme, the Shiba Inu. The capitalization of Dogecoin is $12.4 billion, Shiba Inu is $6.6 billion. The following coins are far behind. The closest pursuer, the FLOKI token (the name of Elon Musk’s Shiba Inu dog), has a capitalization of $350 million,” the financial analyst added.
He also spoke about another popular meme token – ELON (the name refers to the name of Elon Musk), the full name of which is Dogelon Mars. There is also a Baby Doge Coin token.
“There are a lot of them, it is no coincidence that meme coins are also called “shieldcoins” on the market. You can compare them to junk assets. No one is trying to fundamentally analyze these tokens, everyone understands that they have unpredictable dynamics,” Antonov explained.
At the same time, the expert emphasized that any post of the entrepreneur Musk on the Web can raise the price of meme tokens or bring it down.
“Therefore, they cannot be taken seriously. There is no long-term value or far-reaching prospect in meme tokens. They are tied exclusively to hype, ”concluded the analyst.
On April 4, it was reported that Musk, as promised to one of the users of the social network in March 2022, changed the Twitter logo. Instead of the usual blue bird, a dog from the Doge meme appeared. This event influenced the growth of Dogecoin. On April 7, it became known that the Dogecoin rate fell by 9.5% after the symbol of the meme cryptocurrency was removed from the social network logo.
