Can Dogecoin and Other Memecoins Remain Bullish in the Crypto Market?

Memecoins have come to become today’s alternative cryptocurrencies. Their rising popularity indicates a shift from it being a joke to a more serious investment. Thanks to the wider acceptance of Dogecoin (DOGE), other memecoins sprung up and have climbed the crypto ladder to compete with mainstream cryptocurrencies.

As of today, the total market capitalization of Dogecoin is $7 billion. Dogecoin set the precedent for other 150 meme-themed cryptos such as Shiba Inu (SHIB), Kishu Inu, Doge Killer (LEASH), and others. Just in 2021, Dogecoin amassed over 6,000% rise in price despite some critics warning against investing in the coin.

Even more, the value of Doge is expected to rise as the Dogecoin Foundation recently added a new board of directors. The directors will at long last help run the Doge projects and push its market value above the present $40 billion market cap. This comes after the foundation was dissolved in 2014.

Factors That May Hinder the Success of Memecoins

Many crypto analysts have refused to be moved by the fame of some of these coins due to some flaws. Firstly, Some of them pointed out that most of the memecoins do not have a solid business plan. As such, it is tricky to know which of the memecoins will succeed and earn the longevity of Dogecoin.

Secondly, others asserted that memecoins do not have any core value. Therefore, it will be easy prey for crypto scammers. That means scammers can create new crypto, raise awareness for it, and then sell it for profit.

Thirdly, with the rising number of memecoins, it becomes hard for crypto exchanges to determine how many of the coins are scams. Thereupon, making many investors scared to invest.

Fourthly, another barrier is that most of the coins do not have a known leader. For instance, Shiba Inu, (SHIB)’s inventor is unknown which is rare for any crypto project, except the famous crypto —  Bitcoin.

Finally, unlike mainstream cryptos such as Ethereum (ETH) which put their energy in blockchain development, run DeFi smart contracts, and solve problems, memecoins have no practical use.

What is so alluring about memecoins?

Despite the above-mentioned issues with memecoins, few of the coins keep soaring and even rising in price. At the time of writing, Dogecoin (DOGE) trades at the price of $0.2384. Moreover, Shiba Inu (SHIB) trades at $0.00002559.

In summary, Dogecoin (DOGE) and a few other memecoins captured the hearts of many and may continue to do so. So, the world is watching to see the direction these coins are going. Especially Dogecoin whose team announced it is setting a new foundation. Maybe, the new directors will help set values, and engage the coin into more use cases for crypto development. Thus, other memecoins will follow suit. 

Source: https://coinquora.com/can-dogecoin-and-other-memecoins-remain-bullish-in-the-crypto-market/