Shiba Inu, Dogecoin, Floki Inu explosion reveals this about investor sentiment. Recently, the crypto market has seen a much-needed boom, with Bitcoin gaining approval for its ATH and BTC ETF. While the king coin is enjoying a smooth spike, global crypto market capitalization is a whopping $ 2.57 trillion at press time.

However, the highlight of the last few months has not been any of the above achievements, but rather the massive surge in the market cap of meme coins that seem to be leading the big market narrative.

Coin Meme is taking over the waves

Shiba Inu gained nearly 150% on the week before overtaking Dogecoin in terms of market cap, finishing in 9th place. In fact, a few months ago, unknown coins like Floki Inu (FLOKI) rose 298% while Dogelon Mars rose almost 4000% in October.

The funny thing is that most of these coin memes are made as a joke with no intrinsic value to match the name and were “memes” by far. Dogecoin was created in 2013 as a joke about the “doge” meme of the dog Shiba Inu. While Shiba Inu was born in 2020 as a tribute to Dogecoin.

Floki Inu and Shiba Floki showed up in September after Elon Musk posted a photo of his new Floki Shiba Inu puppy.

How have some of these coins outperformed projects like Avalanche, Chainlink, MATIC, Litecoin, and others with several key use cases?

A big retail phenomenon

The triple-digit profits these coins generated brought stories about getting rich quick and attracted many new entrants to their ecosystem. Especially when it comes to investing, there are two schools of thought – long-term and short-term or quick gains.

Most coin memes were created due to a wave of high social anticipation and excitement as well as their pop-culture-driven narrative. Take Shiba Inu as an example, its high activity addresses coinciding with high social media traffic are proof of this.

Source: Sanbase

Also, when you look at the institutional interest in the inflow of institutional capital into Shiba Inu, it seems there is nothing. So there might be reason to believe that the rally in these coins was mainly driven by retail euphoria.

Nevertheless, the coins could find use cases and institutional interest in the future. Additionally, surveys have shown that newbies to crypto don’t do a lot of research before they start.

A recent report by Cardify found that only 16.9% of investors who bought cryptocurrencies “fully understood” the value and potential of cryptocurrencies. While 33.5% of the buyers have no knowledge of the room or describe their understanding as “flower riding”.

So does this “get rich quick” mentality pose a threat to the wider crypto industry narrative and real projects? Oh not really.

While coin memes may have seen a surge in market capitalization, opinion poll pointed out that the majority of investors holding cryptocurrencies (58%) have long-term plans to buy HODL.

Join Bitcoin Magazine Telegram to keep track of news and comment on this article: https://t.me/coincunews

Annie

According to Ambcrypto

Follow the Youtube Channel | Subscribe to telegram channel | Follow the Facebook page