Top 3 Reasons Memecoins like DOGE are Losing Their Edge
Memecoins are facing some tough times these days, struggling to prove themselves as a reliable store of value. With the recent rally in most coins after the news of Trump’s return, memecoins like Dogecoin (DOGE) seem to be falling behind. This has sparked discussions about their long-term viability compared to other altcoins that are performing well.
Despite the challenges, there is still hope for memecoins. In the past, they have thrived on community support and excitement. The real question now is whether this enthusiasm can drive a turnaround, or if we are witnessing the beginning of a decline in memecoin popularity.
Dogecoin, the largest memecoin, is a perfect example of the volatility that these tokens face. While DOGE has garnered attention from celebrity endorsements and even has a government department named after it, it may be losing its most crucial asset – the strong support it once had.
Looking at DOGE’s price chart, it’s clear that the coin is still highly speculative. A single red candlestick can wipe out gains from multiple green ones. Despite being the largest memecoin with a market cap higher than all other meme-tokens combined, it’s challenging to see memecoins surpassing altcoins in the near future.
One key issue facing memecoins like DOGE is market manipulation by major players with large stakes. A recent report revealed that these players are using classic manipulation tactics to keep DOGE in a consolidation phase, preventing any substantial growth. Memecoins heavily rely on community backing to thrive, but this dependency can lead to drastic price swings.
For instance, the coin PEPE has nearly half of its holdings controlled by whale wallets, which can influence the market significantly. These whales conduct transactions in the billions or trillions, manipulating prices to their advantage. This market manipulation keeps memecoins stuck in a volatile cycle, creating uncertainty for retail investors.
With these challenges in mind, predicting a significant surge in value for memecoins next year might be overly optimistic. As they struggle to establish themselves as practical assets and battle market manipulation, memecoins are facing an uphill battle against altcoins.
Ripley G, a seasoned crypto-news journalist, is fascinated by blockchain technology and its impact on daily lives. With a track record in trading since 2019, she keeps a close eye on market movements and trends. If you want to stay updated on the latest crypto news, subscribe to get daily insights in your inbox.
