Memecoins: The Silent Killer of Altcoin Season Says Glassnode Lead Analyst
— CoinMinutes (@coinminutesnews) August 30, 2024
🔹#Memecoins are diverting funds, delaying the altcoin season, says @glassnode analyst James Check.
🔹Every dollar in meme coins takes away 50-60 cents from major #altcoins.
🔹Low altcoin prices might…
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Crypto: Memecoins Delay Altseason - Here's How!
Fri 30 Aug 2024 ▪
3
min read ▪ by
Getting informed
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Altcoins are experiencing a tough period, partly due to the emergence of memecoins which are capturing a significant share of crypto investments. According to James Check, lead analyst at Glassnode, these memecoins act as a “silent killer” by diverting crucial funds, hindering the altcoin season.
Memecoins: an obstacle for crypto altcoins?
In a recent Rough Consensus podcast, James Check highlights the negative impact of memecoins on the performance of altcoins. According to his explanations, crypto traders are rushing to popular memecoins such as Dogecoin, Shib Inu, and PePe, which attract a large amount of capital.
“For every dollar invested in memecoins, about 50 to 60 cents could have been allocated to major altcoins like Ethereum, Solana, and XRP”, he argues in the podcast. This diversion of funds creates a deficit for altcoins, slowing their progress in the crypto market.
The meteoric rise of crypto memes: A threat to altcoins?
Traditionally, memecoins gained popularity towards the end of bullish phases in the crypto market. In 2024, however, the rise of these crypto assets began much earlier, disrupting the evolution of altcoins.
Example:
The enormous success of PEPE has seen traders achieve colossal gains. Notably, there is mention of a crypto investor who turned $3,000 into $46 million.
This situation illustrates the diversion of capital that could have propelled altcoins but is now channeled towards these trendy cryptocurrencies.
Despite the current context, some crypto experts predict a rebound for altcoins once the hype for memecoins diminishes. The current low trading volumes and prices could signal an opportunity for these cryptocurrencies to regain ground. According to these experts, altcoins could even outperform if capital starts to redirect towards them. Stay tuned…
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My name is Ariela, and I am 31 years old. I have been working in the field of web writing for 7 years now. I only discovered trading and cryptocurrency a few years ago, but it is a universe that greatly interests me. The topics covered on the platform allow me to learn more. A singer in my spare time, I also cultivate a great passion for music and reading (and animals!)
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