Main to remember
Why does the same be struggling despite their media threshing?
SUNSATURATION AND LOVE ROTATION DEBITS keep most of the capped mecoins.
What does this mean for the market in the future?
The market enters a stagnant phase. Only the most strategically positioned tokens will see disproportionate yields.
The same is a controversial but significant part of the crypto.
Most have no use and are structurally risky, which makes them more like games of chance than investing. Despite this, same remains a sustainable part of the economy of the attention of cryptography. But do the figures support him?
In 2021, the total market capitalization of cryptography reached 3 billions of dollars and even blew up to $ 83 billion, representing around 2.77% of the total market, highlighting their more role as basic assets.
Source: CoinmarketCap
However, it seems that the attraction of the “reward” of the memes is cooling.
Quick advance for now, market capitalization same is still about $ 80 billion, but the total cryptography market has increased to 4 dollars. This puts their share at around 2%, showing that their market for the market has really shrunk.
Within the structural change in the creation of the same
A Galaxy report highlights “supersaturation” as a main reason, citing,
“Pump.fun changed everything. For the first time, the barrier at the entrance to launch a same was essentially zero.”
He explained that with only a few dollars and no coding experience, anyone could instantly launch an exchangeable liquid token using a liaison curve. This sparked a structural change in the same landscape, the creation of tokens increased and launch cobblestones quickly became the dominant trend.
On Solana (soil) only, more than 32 million tokens have been created and more than 57 million in large channels. This means that 56% of all the mecoins are on Solana, showing that supersaturation occurs in chain.
In other words, the excess offer is the value of the same. With so many tokens that flood the network, the value reservoirs of individual tokens and the traders turn their capital to pursue fast flips elsewhere.
Discharge pump: the same rotation cycle
Samecoins and the wider market show a clear reverse flow.
With T2 2021, the DOGE / BTC ratio culminated at 0.00001287 at the time when BTC reached $ 60,000, triggering a brutal decline of 53% by mid-July. Dogecoin (Doge), on the other hand, exploded at $ 0.73, up more than 1,000%.
Basically, traders have turned into DOGE as BTC struck the resistance. Since then, however, each annual cycle, the DOGE / BTC ratio has exceeded the decline, showing that the same rotations lose punch compared to the summits of the BTC.
Source: TradingView (Doge / BTC)
In short, the memes do not take the rotation, keeping their market capitalization stuck.
This contradicts the hearts of the same. After all, they thrive on the flow, the media and the timing. Clearly, this inadequacy means that the market enters a more stagnant phase, where only the most viral tokens will see disproportionate movements.
