Meme coins like Shibu Inu coin (SHIB), Dogecoin (DOGE), and Mona coin (MONA) are growing in popularity due to the emergence of NFTs and alternative cryptocurrencies. But should you invest in meme coins in 2023, and what factors influence their price on the market?
What Are Meme Coins?
Meme coins are digital currencies inspired by jokes or memes shared on social media and the Internet. In 2013, Dogecoin, the first meme coin was created. Dogecoin, like other meme coins, typically has extremely high volatility.
Additionally, meme coins are primarily driven by the community and can become well-known overnight due to FOMO and online community endorsements. However, when investors start looking at the next meme coin, their price may suddenly drop.
A meme coin's popularity at any given time and the community's investment will both have a significant impact on its future price. Meme coin communities can promote a coin, attract investors, and cause it to go viral. The cost will go up as a result.
Read More: How to Navigate a Crypto Crash in 2023
Determination Of The Price of Meme Coin In 2023
It can be difficult to determine if a meme coin will be bearish or bullish. Meme coins are accessible and typically inexpensive because they have a low market cap and a large supply in circulation. When considering the future of any meme coin, there are many additional factors to consider since meme coins are often inexpensive and easily acquired.
You should research a coin's community, associated influencers, and potential applications before deciding whether to invest in it in 2023. The future of a coin will be well-predicted by its community and well-known influencers.
Furthermore, if a specific meme coin is used in a video game, as payment in a well-known online shop, or as an NFT, it would be wise to invest in that meme coin as it will have increased value.
The Impact of Social Media And Influencers on Meme Coins
The price movement of meme coins is greatly affected by influencers. By promoting the coin to their followers, any influencer adopting a coin will try to pump up its price.
For instance, the value of Dogecoin significantly decreased while Elon Musk was on SNL. This demonstrates the power of influencers and celebrities in influencing meme coin prices, both positively and negatively.
What To Look For When Investing In Meme Coin In 2023
It is important to invest in active communities when looking for a bullish meme coin. Under the right conditions, any coin can become valuable at any time, even though there are currently many meme coins available. The hardest part may be finding the next meme coin that would explode.
Also, there is a possibility that projects will attempt to take advantage of the hype of the meme coin market to scam traders in the future as the meme coin market continues to grow. Considering this, it is important to always be careful and to DYOR before investing or trading meme coins.
Meme coins are here to stay, just like many new alternative currencies. Their future, however, depends on their capacity to build a strong community, maintain cultural relevance, and provide some form of value to its owners, even if that value is just a good joke or just perceived.
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