Memes go berserk in March

Well, looks like we skipped alt season and went straight for meme season.?

As Bitcoin extends its price discovery mode, increased retail participation is evident with popular memecoins surging to life and posting triple-digit gains on the week! The meme frenzy has also dragged Ethereum’s network fees to a two-year high.?

If you’ve held any memecoin on Solana over the past week, it’s probably been a good week for you.

Source:?CoinGecko

Let us analyze the trends around memes. And what these can mean to you.

Weekly volumes are through the roof

Memecoins have seen outsized gains over the past weeks with weekly tradevolume hitting a multi-year high at $80 billion. SHIB saw the largest volume at $31 billion surpassing the market’s leader DOGE ($23 billion) and other large-cap non-meme?altcoins such as SOL. PEPE and Solana-based BONK also registered significant volumes? — $14 billion and $5 billion respectively.?

Coins like?PEPE and?WIF are doing a casual 700-800% on the monthly. However, remember that memecoins are also extremely volatile, capable of doing pullbacks of 60%-95% when the overall market dips by 15%-25%.

Solana memes leading the way

A closer look at Ethereum and Solana DEX volumes reveals that Solana has flipped Ethereum in 24-hour volumes this week, with the two blockchain networks recording $2.5 billion and $2.3 billion in daily volumes, respectively.

This could partly be attributed to the rise of Solana memecoins. Projects like BONK and Dogwifhat (WIF) have become leaders in the Solana memecoin market. Solana has also become home to several celebrity- and politician-based memecoins like BODEN, a coin based on US president Joe Biden.

WIF has momentum and narrative on its side

WIF has run to $3.25 while the community has raised $680,000 to get an ad on the Las Vegas Sphere. Trailing by 25%, the dog-themed coin could soon catchup to PEPE, if it continues its steady growth.

Source:?https://twitter.com/osf_rekt/status/1767954918231679123

How do you navigate memecoin investing?

• You can’t ignore them any longer. If you are confident that you can lose your principle in memecoins and be okay with it, then go ahead. We recommend a <2% of your crypto portfolio allocation to memecoins. If they do well, they can even hit 10% of your portfolio on their own.
• Buying when a coin has already pumped by 100%, 200% or 400% in the short-term is not recommended. You become the exit liquidity for earlier buyers if you do. Do not FOMO because you are late.
• The reason some memecoins show astronomical gains is because their market cap is low. The lower the market cap of a meme coin, the higher it pumps but risk of fading into oblivion is higher too.
• If you manage to make 5x on your memecoin investment, the temptation to rotate profits into the next 5x opportunity is high. On the contrary, we recommend booking profits to the tune of 50%-75% to safeguard your gains.?

Memes are the most volatile category of the crypto ecosystem. These tokens hold no value and do not serve any purpose. It’s also a zero-sum game. In simpler terms, any profits you make come from someone else. That is why those that sell near the top and don’t FOMO back in, win.

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Disclaimer: Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Please do your own research before investing and seek independent legal/financial advice if you are unsure about the investments.? ?