As a seasoned crypto analyst with years of experience observing the market, I have seen my fair share of trends come and go. And while I understand that the allure of another meme coin supercycle, akin to what we witnessed in 2021 with Dogecoin and Shiba Inu, is hard to resist for many investors, I believe there are reasons to be cautious.
Crypto expert Altcoin Sherpa has weighed in on the possibility of another meme coin boom similar to the one experienced by Dogecoin and other meme tokens in 2021. The analyst expresses confidence that such an event may occur, but with a twist that might not align with popular beliefs.
Will There Be A Repeat Of 2021 Meme Coin Supercycle?
In a recent X (previously Twitter) post, Altcoin Sherpa predicted that the meme coin bubble will recur, yet warned against expecting another astounding surge like Shiba Inu‘s 46 million percent price increase in 2021.
As an analyst, I’d interpret his statement as follows: I believe the main cause of this perspective is due to the market being “overdispersed,” meaning there are too many individual assets with limited correlation between them. Additionally, we haven’t experienced a significant price surge similar to 2021 since then, leading me to question if such an event will recur. Furthermore, Altcoin Sherpa pointed out that the current market is saturated with meme coins, making it more challenging for any single coin to experience a meteoric rise like Shiba Inu did.
In contrast to last year when liquidity was more concentrated in specific sectors like Solana, LUNA, and Avalanche, Altcoin Sherpa pointed out that nowadays, the focus is spread across various coins, resulting in individual coins experiencing price surges rather than broader market movements. He cautions against expecting similar sector-wide gains from these or other coins in the future.
What The Meme Coin Supercycle Is Going To Look Like Now
Based on Altcoin Sherpa’s analysis, it is unlikely for another Shiba Inu-like market surge to occur. Instead, he anticipates that approximately 15 mid-cap altcoins will perform exceptionally well with more evenly distributed gains compared to highly concentrated bets. This means that the prices of 15 coins could potentially increase tenfold, while only three coins might experience a fiftyfold price surge. However, Altcoin Sherpa acknowledged that there may be some exceptions to this prediction.
Expert: Altcoin Sherpa advised investors not to overlook the meme coin sector, as he anticipates significant returns on each investment. He noted that there’s a meme coin suitable for every risk tolerance level. According to him, larger investors should consider Dogecoin and Shiba Inu due to their established positions in the meme coin market, leaving more limited potential for upward growth.
The crypto expert continued by explaining that PEPE, Dogewhiz, and BONK are suitable options for investors with substantial liquidity, seeking greater returns. On the other hand, he recommended considering investment in all mid-cap altcoins, as a few of them may yet reach market caps worth billions according to Altcoin Sherpa.
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2024-07-18 07:11