Analysts unveil key reasons for meme coins popularity
Why have meme tokens become so popular among traders? Analysts suppose that stagnation in more reliable crypto assets is the main reason for such popularity. Notably, a rising appetite for risk also explains why traders choose such tokens.
In early October, the price of several digital currencies, which feature the image of a Japanese breed dog Shiba Inu, showed a significant jump. The Shiba Inu token as well as Akita Inu and Dogelon Mars are among the best performers. Thus, the Shiba Inu token has entered the ranks of the world's top 20 cryptos in terms of the market capitalization. In one week, its price skyrocketed by 324%. The price of the Akita Inu token surged by 274% and Dogelon Mars soared by 190%.
The meme currencies achieved such a spectacular success thanks to Elon Musk’s publications on Twitter, especially the one with the photo of his Shiba Inu puppy. In addition, Elon Musk is known for his eye-catching twits that have attracted investors’ interest in various cryptocurrencies.
However, demand for meme tokens depends not only on speeches and posts provided by reputable and famous people. Stagnation in larger and more stable coins such as bitcoin also boosts the interest in meme coins. After a rapid rise, bitcoin has become less volatile, showing a more stable dynamic. However, market participants prefer more active trading in order to make money faster.
Meme tokens meet such requirements and provide traders with the opportunity to enjoy risk trading. Such an approach looks like gambling and it will hardly suit everyone.
ENCRY's founder Roman Nekrasov is sure that this theory is true. At the same time, he warns against investing all the funds in such assets. Trading of meme tokens is very risky since it is almost impossible to predict their future movement.
Vladimir Smetanin, CEO of Swiss-based financial company Newcent, supposes that the popularity of such assets is extremely unstable and they may lose it as fast as they achieved it. Notably, the actions of some big players of the crypto market may cause a collapse in any asset. Not so long ago, bitcoin climbed to $55.5 thousand for the first time since May 2021. Ki Young Ju, CEO at CryptoQuant, explains such a rally by whale buying. It means that big players invested $1.6 billion in bitcoin in just 5 minutes.
Traders bet on oil prices soaring to $200 per barrel
The current situation in global oil markets suggests that investors are optimistic about the future. With each passing day, more and more market participants are betting on oil prices continuing to gain in value. Some are confident that Brent will advance to $250 per barrel.Currently, oil prices are trading upwards, drifting near 7-year highs at around $80 per barrel.
13:48 2021-11-26 UTC+00
McKinsey reveals global balance sheet report
Recently, McKinsey has published a report on the world's net wealth. According to MGI’s The Rise and Rise of the Global Balance Sheet, the world's wealth has soared considerably over the two decades but nowhere as much as in China. Its net worth was the highest among the 10 countries.
12:24 2021-11-26 UTC+00
Many Americans think economy getting worse
Like the rest of the world, the US is dealing with the negative consequences of the coronavirus crisis. However, while the problems of some economies hardly affect the market sentiment, the issues of the world's largest economy are always an alarming bell. Currently, the US is facing the highest inflation on record. Local consumers are putting the blame on the incompetence of the US government.
12:20 2021-11-26 UTC+00
Coinbase net revenue jumps to $2.2 billion
The high popularity of the crypto market boosts revenue of the companies involved in this sphere. Not so long ago, Coinbase, the largest cryptocurrency exchange in the US, reported record high revenue for this year. Thus, from January to September of 2021, the company’s annual net income soared by almost 55 times to $2.242 billion from $41 million.
12:17 2021-11-26 UTC+00
General Electric to split into three companies
General Electric, the US industrial giant, announced that the company intends to split into three separate units focusing on aviation, health care, and energy.The company’s stock has not shown significant growth for the last several years despite no crises being cracked down on it.
10:18 2021-11-26 UTC+00
White House seeking tools for taming high inflation
In countries based on solid democratic fundamentals, people never hesitate to address thorny issues to a government. Americans vented their anger over rising consumer prices in opinion polls and appealed to the White House to deal with the soaring inflation. In response, the government acknowledged the problem.Inflation began snowballing earlier in the year.
15:49 2021-11-25 UTC+00