Struggling Meme Coins Signal Need For Change In Crypto Market
By Benzinga
The recent performance of meme coins has sparked a debate among cryptocurrency experts. The drop in their values has led to questions about their long-term sustainability and the necessity for innovative approaches to maintain their appeal.
Market Performance Overview
Meme coins, which previously enjoyed considerable popularity, have experienced notable declines. Dogecoin, for example, is currently valued at $0.1375, showing a 6.7% decrease over 24 hours and a 13.5% drop over the past week.
Shiba Inu has similarly declined to $0.0000217, with a 7.3% decrease in 24 hours and a 9.5% reduction over the week.
Economist and crypto trader Alex Krüger believes traditional launch methods for meme coins are now less effective. He states, “the odds of a new memecoin succeeding by following the same old approach are very close to zero at this point.” Krüger emphasizes the need for new mechanisms, citing Notcoin, which features a unique deflationary model, as an example.
Calls for Innovation
Krüger also criticizes the reliance on “fair launches,” where tokens are distributed without a pre-sale. He suggests these methods only work under rare conditions. Other experts support this view, noting the necessity for fresh strategies in the meme coin sector.
Crypto analyst Viktor shared a chart showing the performance of altcoins, excluding the top 10 cryptocurrencies. The chart indicates that the current market position for altcoins mirrors the downturns of October 2023 and April 2024.
Market Influences
TXMC offers another perspective, arguing that broader economic factors influence the recent market sluggishness. He points out that the synchronized rise of the Dow Jones during late 2023 and early 2024 suggests a “soft Treasury-Fed pivot” played a substantial role rather than just the anticipation of a Bitcoin ETF.
Where To Learn More
These discussions are particularly relevant to the upcoming Benzinga’s Future of Digital Assets event on November 19 in New York City. The event will gather leaders in digital assets and institutional investors to explore the state of digital money and its future. With over 1,000 industry leaders expected, the event offers unparalleled networking opportunities and the chance to form new partnerships.
The challenges meme coins face show the need for continual adaptation in the digital asset space. Benzinga’s Future of Digital Assets event provides a platform to address these challenges and explore new strategies, making it an essential gathering for those in the cryptocurrency industry.
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