With the advent of Bitcoin, cryptocurrencies were expected to revolutionize the way we deal with money and store our value. Bitcoin bearing a resemblance to gold was also referred to as ‘digital gold’ owing to its limited supply. So far, it’s safe to say that a significant vision Bitcoin was introduced with has come to life.
It has been pretty much the same with Ethereum, which solved a few limitations of Bitcoin, with shifting from the Proof-of-Work consensus mechanism to the PoS mechanism being the primary one.
An underlying aspect of most successful cryptos has been the utility they provide and their vision supported by their strong fundamentals.
This, however, isn’t apparent across most meme coins. As many are regarded to be nothing but pump-and-dump schemes, for individuals to make “quick money”.
And considering the performance of these meme coins this year, the obvious question to ask is: are meme coins dying? And the answer may not be so surprising.
The Rise and Fall of Dogecoin
Dogecoin is an open-source decentralized cryptocurrency made with the intention of being an actual joke. More precisely, to mock Bitcoin, which was the trending cryptocurrency at a time when Dogecoin made its entrance.
Flashforward to 2021, when Dogecoin became the biggest meme coin of all time. Securing a market cap of close to $90 Billion.
While most coins source their value from the utility they provide, the problem they solve, or the industrial revolution they bring. Dogecoin attracted most of the attention it got by being a product of the hype.
Almost every investor who invested in Dogecoin while it was all over the news was because everyone else was investing in it. Everyone was in to make a quick buck. In addition to that, Elon Musk talking about the coin on Twitter and expressing his support helped it scale new heights never previously seen.
Ironically, the conventional uselessness of Doge was apparent to most investors, yet, they chose to put their money into it. Aspiring for the coin to reach $1.
All this hype managed to push the coin to $0.73. However, it couldn’t move any further. A reality check was in line for a coin that secured a ton of value and offered too little.
In August of that year, the price of Doge started to plummet and has been doing so ever since. Although there have been multiple crests and troughs throughout the year, they haven’t aided in any recovery for the coin.
On the other hand, a more functional coin like Bitcoin has managed to steadily increase in price over the last 3 months. Amidst the market-wide crash that sent most crypto prices plummeting down to record-year lows. The steady recovery is an effect of the strong fundamentals on Bitcoin is based on.
This price behavior of Bitcoin is fairly obvious as it runs through bull and bear runs and has shown radical price movements historically. Managing to overtake its previous ATHs almost every time.
Both these examples illustrate the disparity between a coin that’s fundamentally useful and another that isn’t. And the latter is most of the meme coins.
So, are meme coins just a hype-based phenomenon? Probably yes.
Are they built to survive for decades? Unlikely.
Why Haven’t Meme Coins Died Yet?
Major meme coins, such as Doge and Shiba Inu, have too much value locked in them for them to die. Billions of dollars being wiped from the market isn’t beneficial for the investors or the market itself. Therefore, a better alternative in this situation is to find use cases for these meme coins. A way to make them productive; redefining their image as a mere joke.
But this isn’t true for all the meme coins. Rather, it’s true for quite a few.
Only major coins that are too big to afford to fail, will be guided towards serving a function. As letting them die wouldn’t be productive by any definition. Other not-so-significant coins that have no inherent function will have a hard time keeping their heads above the water.
How Will Meme Coins Save Themselves
The solution to meme coins not dying lies in the very problem that causes them to die. And it is by being useful. Value-adding meme coins won’t be just another ‘Ponzi scheme’ and will be welcomed by investors dearly.
One such coin is Tamadoge, a play-to-earn crypto game incentivizing users to earn money as they become part of the Talmadge ecosystem.
Coins like Tamadoge, which break out of the conventional meme coin approach, and innovate a future for meme coins to exist along with other cryptocurrencies, can prevent meme coins from dying in the future.
At least for now, the future of meme coins looks safe. If more projects like Tamadoge emerge, the future of meme coins could look bright. It’s only a matter of time before we find out.
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Source: https://insidebitcoins.com/news/are-memecoins-dying