An analyst has identified a category of crypto assets that will prove more profitable in this bullrun. What is it?
Each cycle in the history of the crypto industry has had its own fundamental basis. For example, in 2017, the hype was centred around ICO campaigns that allowed investors to make quick ICOs and including raising capital even for outright fraudulent projects. Between 2020 and 2021, tokens at the core of projects from decentralised finance (DeFi) and NFT became the most popular topic. According to crypto analyst Murad Makhmudov, in this cycle, investors’ attention will be focused on promising meme tokens, which means coin enthusiasts should clearly get involved with them.
The market capitalisation of meme tokens today is $46.2 billion. Here are the biggest projects from this category.
The largest meme-tokens by market capitalisation
Trading volumes with them over the last day amounted to 6.3 billion, which indicates the popularity of such assets among traders.
In addition, as the events of recent months have shown, meme tokens are able to perfectly recover from falls, if we are talking about popular projects with a loyal community.
Which cryptocurrencies are being bought?
The above-mentioned key eras were shown by an analyst on a long-term chart of Bitcoin on Twitter. Here are certain time periods with the noted most HYIP projects in the sector.
Phases of cryptocurrency market development
According to Makhmudov, coins from each sector had their own long-term patterns on the chart, that is, they developed in a certain way. Here’s his cue.
If you look at the popular assets that grew rapidly during each respective bullrun, you’ll notice that many of these coins had a pre-pump in the year before the trend peak. The final wave of growth occurs at the end of the peak year.
A prime example is the chart of XMR in the 2016-2017 bullrun. Here is a relevant image that shows this trend prominently.
Growth phases of the Monero XMR cryptocurrency.
That is, the analyst noted the curious trend of three phases of growth of the most popular cryptocurrencies during one bullrun. The first jump is a test jump that signals investor interest in the chosen coin. The other two increases occur near the end of the bullrun, with the last growth phase stopping as the cycle shifts and a bearish trend sets in.
A similar pattern can also be seen in the chart of Solana SOL, which has proven to be one of the most profitable coins in the 2020-2021 cycle.
Solana SOL cryptocurrency growth phases
Right now, Solana continues to remain at the peak of its popularity due to the emergence of many meme tokens and regular improvements that affect the overall performance of this network.
According to CryptoPotato’s sources, Mahmudov’s theory also applies to NFT token value graphs. The graph of the minimum price of a token from the CryptoPunks collection, which became one of the symbols of the previous bullrun, is given as an example.
The growth phases of the popular CryptoPunks NFT tokens
In addition, the analyst brought in a table with the returns of cryptocurrencies from different areas since the beginning of this year. It is in the sector of meme tokens that the biggest growth is observed, which means that investors are actively investing their own capital in this sphere and believe in the ability of the latter to attract new users.
Profitability of different crypto sectors
As you can see, popular meme tokens brought hundreds of per cent returns in 2024. Of course, some similar projects have depreciated in value, but the largest crypto assets are actually performing well despite the market crash in early August.
In this regard, Mahmudov has an important assumption.
What if the spring of 2024 was a period of mild pre-pump meme-tokens?
The analyst showed the scale of his forecast on the graph of Dogwifhat WIF meme-token. It is difficult to believe in such a scenario now, but Makhmudov himself believes that the meme sphere is still underestimated.
The potential growth of WIF
In addition, the scale of past bullruns was much larger than the current growth. For example, Dogecoin’s market capitalisation reached $88 billion at its peak, while Shiba Inu’s corresponding figure jumped to $41 billion.
Murad also highlighted the top 20 meme tokens that can now be recognised as “not quite idiotic”. The list excludes “dinosaurs” like Dogecoin, Shiba Inu and Floki – the expert considers them irrelevant for the current growth cycle.
Top meme tokens with the largest market capitalisation
Their total capitalisation – that is, the product of the number of coins by the current exchange rate – exceeds the level of $8.6 billion. Murad said he would not be surprised to see this figure grow to a trillion dollars in the current market cycle.
Capitalisation of popular meme tokens
Some coin enthusiasts may think that such a level is too high for such a “silly” asset concept. However, memes actually have a right to life and are great at attracting users as they are associated with fun and excitement.
For now, we can assume that such assets will become an integral part of the crypto industry, as they have already become the backbone of the internet and online communication. Therefore, Mahmudov’s prediction is clearly worth heeding.
However, it is important not to forget that such investments should be approached responsibly and not to invest too much. And although memes can really bring hundreds of per cent of profitability in a matter of days, they can also fall in value, and very sharply. Therefore, if you want to get in touch with memes, you should allocate a fixed share of your total portfolio to them, ideally a small one.
Meme tokens were initially developed mainly on Efirium. However, when competitors with faster transactions and lower commissions appeared, many popular projects were launched with them.
However, all this does not make the fundamentals of Efirium something bad – at least, the creator of the altcoin, Vitalik Buterin, does not consider them so. The day before, he published a list of advantages of this cryptocurrency on Twitter.
First of all, Buterin began by noting a significant reduction in transaction fees in Layer 2 (L2) networks, which now averages less than $0.01. According to him, this has made Etherium accessible and cost-effective for users, which is a crucial factor in keeping the network competitive, CryptoSlate reported.
Meme token distribution in staking
In addition to these technological advances, Buterin noted an improved user experience for cross-platform wallets for Tier 2 networks, which now require less manual intervention when switching chains. This improvement simplifies interactions within the ecosystem, making it more user-friendly.
In addition, Vitalik stated the growing maturity of Zero-Knowledge (ZK) technology, which has become more powerful and accessible to developers of decentralised applications.
He added that the development of the ZK toolkit, as well as the emergence of second-generation privacy solutions, confirms Etherium’s continuous innovation in privacy and security.
Murad Mahmudov's forecast does not guarantee the growth of meme tokens to the mentioned levels during the current bullrun. However, this category of cryptoassets is really great at attracting new users - including those outside the blockchain industry. Therefore, one can get involved with them at least for reasons of current hype, which in the case of coins usually leads to significant growth.
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