Hedge funds are increasingly adopting memecoins as part of their investment strategies, fueled by the current craze and rising prices in the cryptocurrency market.
Dogwifhat Becomes Hedge Funds’s Goto Bet
Some knowledgeable people are reporting an increasing number of top hedge funds embracing the use and investment in memecoins.
In late December 2023, Dogwifhat on the Solana platform emerged as a top performer among cryptocurrencies. Shortly after, Stratos based in Newport Beach, California, introduced a liquid fund investing in this token.
Over the course of time, Dogwifhat memecoin experienced a significant increase of approximately 200%, contributing to a impressive 137% gain for the Stratos fund during the first quarter.
In the near future, trading platforms such as Robinhood and Binance have revealed their intention to add support for the token by making it available for trading. Stratos, a venture capital-backed project led by Marc Andreessen and Chris Dixon, is just one of several hedge funds exploring investment opportunities in the memecoin market.
Anonymous sources claim that Brevan Howard, a prominent investment management company, previously invested a small amount of funds in the memecoin market.
In addition, Pantera Capital’s Liquid Token Fund achieved an impressive gain of 66% during the first quarter of 2024. According to Coingape, the fund’s success can be attributed mainly to its investments in cryptocurrencies such as Solana (SOL), RBN, Aevo, and Stacks (STX).
Consequently, it wasn’t surprising when the crypto fund announced that “memecoins will persist,” and that “trading memecoins offers enormous potential.”
The Dwindling Confidence For Memecoins by Hedge Funds
Memecoins are seeing more interaction, leading to substantial trading activity on decentralized exchanges. The total value of memecoins hovers around $54.7 billion in the market.
Some individuals hold the opinion that the surge in memecoin prices is merely a fleeting trend that will eventually die down. As Quinn Thompson, founder of Lekker Capital, put it, “It’s the leading edge of speculation. It’s a gamble.”
Currently, the value of Dogwifhat memecoin is more than 40% lower than its peak in March. At the moment, it is being traded at $3.0, representing a 7.15% rise over the past day. In contrast, coins such as SOL continue to surge, fueling speculation that their price could reach a new all-time high.
Read More
- USD ZAR PREDICTION
- SOL PREDICTION. SOL cryptocurrency
- CKB PREDICTION. CKB cryptocurrency
- EUR ILS PREDICTION
- WELSH PREDICTION. WELSH cryptocurrency
- TROY PREDICTION. TROY cryptocurrency
- BTC PREDICTION. BTC cryptocurrency
- PRIME PREDICTION. PRIME cryptocurrency
- SHI PREDICTION. SHI cryptocurrency
- USD COP PREDICTION
2024-04-24 00:07