Meme coins continue to be one of the best-performing narratives in 2024. The market capitalization has now exceeded $58 billion, prompting mixed opinions from experienced investors.
These views are attempting to predict whether meme coins are on the verge of a supercycle or due for a major correction.
Arguments Suggesting Meme Coins Have Peaked
According to Investor Miles Deutscher, the widespread discussions about meme coins across social media platforms, from YouTube to X, are a warning sign. Data from Kaito indicates that the “mindshare” of meme coins has reached a new high at 27.32%. Mindshare is a metric that measures the proportion of attention a topic garners from the community.
Read more: What Are Meme Coins?
“Well, as I pointed out earlier, pretty much all of CT (Crypto Twitter) is shilling the meme narrative. Mindshare is at an ATH, yet the CT pool alone isn’t enough to sustain the crazy price increases we’ve been seeing. And as market caps increase, it takes more capital to sustain momentum. So either memes cross into the retail chasm now, or, we may put in a local top for a little while and let things temporarily cool down. My personal belief is that the latter will be the case.” Miles Deutscher said.
While Deutscher does not deny the long-term potential of meme coins, he believes they are at a crossroads. This means meme coins will either collapse or undergo a correction as the hype subsides.
Additionally, he considers selling altcoins now to buy meme coins might not be a very smart decision. Instead, he advises investors to plan cautiously before jumping on the hype train.
CrediBULL Crypto offers a less common perspective, echoing the correlation between Bitcoin and altcoins. Specifically, he suggests that the sharp rise in small-cap meme coins, while large-cap ones stagnate, signals the end of the hype cycle.
“While previous meme “leaders” are in distribution – money trickles out of them and into smaller meme coins before markdown across the board begins. Just like the biggest alt season occurs after a Bitcoin top – the biggest “meme coin” season occurs after meme coin majors have topped. This isn’t the start of your “meme-coin super cycle”, this is the end of it.” CrediBULL Crypto commented.
Arguments Supporting Meme Coins Entering a Supercycle
Despite the pessimistic views, optimistic opinions about meme coins remain widespread. For instance, Murad points to meme coins’ performance over the past month.
“Meme coins are growing on both Solana and Ethereum. We are in the early stages of the Meme coin Supercycle,” Murad stated.
Additionally, Google Trends data shows that search interest in meme coins has consistently remained high, between 75 and 100 points throughout October. This indicates that meme coins are currently the sector attracting new investors to the market.
Read more: 7 Hot Meme Coins and Altcoins that are Trending in 2024
Investor Curb uses a bubble growth model, predicting that meme coins are only in the early stages of this cycle. At the time of writing, the market capitalization of meme coins has reached $58.3 billion, up 2.8% in the past 24 hours, according to Coingecko.
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Source: https://beincrypto.com/meme-coins-might-have-hit-local-top/