With the increase of NFT’s and alternate cryptocurrencies, meme coins such as Dogecoin (DOGE), Shibu Inu coin (SHIB), and Mona coin (MONA) are ending up being significantly popular. Traders can discover all the major meme coins here. However, what is the future of meme coins and what affects their market value?
Simply put, the future rate of any meme coin is strongly based upon the community bought it and the popularity of that coin at any offered time. Meme coin communities can help spread news of the coin, get others to invest, and make a coin go viral in order to help increase the cost.
Meme coin designers even use promotion stunts to increase the cost of a meme coin. The designers of Shibu Inu coin gave half of all SHIB coins to ETH co-founder Vitalik Buterin. Nevertheless that backfired when he started selling countless dollars worth of meme coins sent out to him.
Meme Coin Price Determination
Figuring out whether a meme coin will be bullish or bearish can be difficult to determine. Meme coins generally do not have a market cap and a large circulating supply making them relatively inexpensive and simple to come by. Given that meme coins are often low-cost and quickly gotten, there are numerous additional elements to weigh when thinking about the future of any meme coin.
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To much better figure out if you wish to buy a meme coin, check out its community, influencers who are related to a coin, and what that coin could be utilized for. Popular influencers and a strong neighborhood will be excellent clues into the future of that coin.
Additionally, if a specific meme coin ends up being suitable to a computer game, a currency used in a popular online shop, or as an NFT, that meme coin would be a good bet for financiers since there is extra value in the coin.
Influencer And Social Media’s Impact On Meme Coins
Influencers have a substantial effect on meme coins and their cost movement. When any influencer embraces a coin, they want to promote that coin by pumping up the rate through promo to their followers.
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When Elon Musk appeared on SNL, the cost of Dogecoin significantly dipped while he was on TELEVISION. As the following chart below shows, directly throughout the airing of SNL on May 9, 2021 the price of DOGE dropped considerably. This goes to demonstrate how influential celebs and influencers can be when it concerns the cost motion of meme coins both for good and bad.
The surge of Dogecoin has stimulated interest in more meme communities|Source: DOGEUSD on TradingView.com
What To Look For When Trading Meme Coins
When trying to find a bullish meme coin, invest in the neighborhoods that you believe in and those that are active. Although there are lots of meme coins today and still more being developed, any one coin can end up being valuable at any given time under the right circumstances. Discovering the next meme coin that takes off is definitely the hardest part.
Concluding Meme Coins
Like many new altcoins, meme coins are here to stay. But, the future of any meme coin depends on its capability to promote a strong community, remain culturally relevant, and use some sort of value for its holders, even just and amusing joke or perceived worth.
Included image from iStockPhoto, Charts from TradingView.com