Are memecoins proven to be profitable?

When the main assets of the crypto market stagnate, many investors turn to memecoins, risky assets, but which seem to have proven themselves in terms of profit.

Do memecoins guarantee big returns every time?

Memecoins have the coast. Every now and then, they get renewed, and every now and then their prices go up suddenly only to drop right back down, while sometimes, they follow with incredible hype. Although over time, an investment in a memecoin is not necessarily synonymous with success, waves of pumping and dumping often multiply in the prices of these cryptocurrencies allowing huge profits for their investors.

If you consider some of the most popular memecoins in the market such as Shiba Inu, Dogecoin, Tamadoge, Baby Doge Coin or even Floki Inu, the results are clear, with wallets that have generated millionaire profits from a “smaller” investment.

The palm of the best wallet returns, according to Nansenat an address that managed to exceed 2.3 million profits with an investment of $450 in memecoins.

The top 200 portfolios spent $160,000 in investments for staggering returns, amounting to $82 million ($410,000 on average per portfolio). Amounts that seem accessible to ordinary investors if we consider the amount that can be invested in memecoins. Indeed, on average, these portfolios have spent “only” $800 on their financial investments, with few trades in between, but rather a safe holding strategy.

For their part, the more “active” investors, that is, those who are more used to looking for profits through trading, have certainly made bigger profits, but at the risk of a much higher capital and by multiplying trades. A strategy which, unlike the first, is not necessarily affordable for anyone entering the cryptocurrency sector. Furthermore, this second strategy – although also winning for some traders – has a lower return on investment (ROI) than the first in the case of these memecoin-linked wallets.

On the other hand, gains were made in the same assets, in particular market leading memecoins which saw significant bullish waves as tokens RCH, DOGE or TAMA AND Inu hair.

Which crypto memes for 2023?

Moreover, it is not surprising that many of these crypto assets that have produced new millionaires are present in recommended top lists by crypto analysts.

  • Tamadog is especially very regularly recommendedfor its significant trading volumes that indicate a real activity surrounding the token, but also from the development of a utilitarian ecosystem, a rather surprising fact for a memecoin.
  • Dogecoin also cannot be forgotten, as it is the memecoin with the largest market capitalization and regularly gains Elon Musk’s supportonly that.
  • shiba inus is not to be extended, with the coming of the shibariumtoken burn which may increase with the increasing utility of the token and Ethereum whales still equally important to maintain buying pressure on the token

Of course, one of the main characteristics that define a memecoin should not be overlooked: the primary use of an asset of this type is speculation. A speculation that can sometimes lead to great profits, but also considerable disappointments. High returns unfortunately often come with higher risks.

However, in order to maintain the hype around tokens, project developers are very often forced to give an initial utility to the token or provide it with one along the way. An aspect that could renew the sector of these crypto-currencies.

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