If you're on a Galaxy Fold, consider unfolding your phone or viewing it in full screen to best optimize your experience.
by Tor Constantino | Published on Nov. 26, 2021
Many or all of the products here are from our partners that pay us a commission. It’s how we make money. But our editorial integrity ensures our experts’ opinions aren’t influenced by compensation. Terms may apply to offers listed on this page.
Many crypto investors dismiss meme coins as one trick dog and pony shows with little upside or utility, but that doesn't stop newbie investors from barking up that tree.
Ever since Bitcoin set its record high of nearly $69,000 a couple weeks ago, more and more people are paying attention to cryptocurrencies. That's even more true when talking about meme cryptos such as Dogecoin and Shiba Inu.
For instance, Shiba's official Twitter following recently topped 2 million individuals, surpassing Ethereum's 1.8 million followers. Shiba also notched more than 1 million holders of its token last week per an independent audit on its website. Lastly, Shiba's total market capitalization is more than $20.2 billion, ranking it 13th among all cryptos, while Dogecoin carries a $28.5 billion valuation placing it in the 10th spot.
But the major dog-themed meme assets are currently under severe pricing pressure. At the time of writing SHIB was trading at $0.000037, marking a 57% decline from its peak of $0.0000879 posted on Oct. 27, and it's down 10.69% during the past 24 hours. Likewise, Dogecoin is also down 4.03%, and the newest pup in the meme litter, Floki Inu, is down 14.89% over the last day. Both are also down significant percentages from their all-time highs. Despite these current price pressures, it seems that crypto newbies can't get enough of meme coins.
There appears to be a small handful of reasons why investors are so drawn to this new meme-based variety of cryptos.
There are other considerations that new investors skip right over regarding meme tokens. For instance, they tend to have high concentrations of the existing supply stored in a few dozen wallets. That level of centralization makes for a suboptimal investment that is susceptible to manipulation.
Doge and Shiba both have unlimited supplies of tokens that can be mined indefinitely. Economics 101 teaches that the more of something that's available, the less valuable it becomes. That's a big problem facing fiat currencies, which continue to flood markets with new money, and it's also a problem for meme coins.
Lastly, limited use cases right now, coupled with underwhelming development roadmaps for the future do not instill confidence in the dog-themed "meme dream team." Especially when considering breakthrough projects such as Ethereum 2.0, Chainlink, Cardano, Decentraland, Energi, and many others, all of which have varied utilities and solve a variety of problems.
While meme assets may be an understandable doggy door into the crypto space for new entrants, it's best to shimmy through that entry quickly so as not to get stuck there.
There are hundreds of platforms around the world that are waiting to give you access to thousands of cryptocurrencies. And to find the one that's right for you, you'll need to decide what features that matter most to you.
To help you get started, our independent experts have sifted through the options to bring you some of our best cryptocurrency exchanges for 2021. Check out the list here and get started on your crypto journey, today.
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.
Tor Constantino owns Bitcoin.
The Ascent is a Motley Fool service that rates and reviews essential products for your everyday money matters.
Copyright © 2018 - 2022 The Ascent. All rights reserved.