Meme coins remain one of the best performing sectors in 2024. With a market capitalization exceeding $58 billion, opinions are divided among experienced investors.
These views are trying to predict whether meme coins are at the start of a supercycle or facing a major correction.
Claims that meme coins have reached a peak
According to investor Miles Deutscher, the active discussion of meme coins across various social media platforms, from YouTube to X, is a warning sign. Data from crypto online data analytics firm Kaito shows that meme coins' 'mindshare' has reached a new all-time high of 27.32%. Mindshare measures the proportion of attention a topic receives within a community.
Read more: What are meme coins?
"As mentioned, the entire Crypto Twitter (CT) ecosystem is promoting the meme narrative. Mindshare has reached an all-time high (ATH), but the CT pool alone is not enough to sustain the crazy price appreciation we're seeing. As market cap increases, more capital is needed to maintain momentum. So either memes spill over into the retail market, or we briefly hit local tops and temporarily cool things off. Personally, I believe the latter will happen." Miles Deutscher said.
Deutscher does not deny the long-term potential of meme coins, but sees them at a crossroads. This means meme coins could experience a correction as they either collapse or lose interest.
He also considers that it may not be wise to sell altcoins and buy meme coins right now. Instead, he advises investors to plan carefully before jumping on the hype train.
CrediBULL Crypto presents a rare perspective, emphasizing the correlation between Bitcoin and altcoins. Specifically, the sharp rise of small meme coins and the stagnation of larger meme coins suggest the end of a hype cycle.
"As previous meme 'leaders' distribute - money flows out of them and into smaller meme coins. And overall price decline begins. Just like the biggest altcoin season occurs post Bitcoin peak - the biggest 'meme coin' season occurs post the major meme coin tops. This is not the start of your 'meme coin supercycle', but the end of it." CrediBULL Crypto shared his view.
Claims that meme coins are entering a supercycle
Despite the pessimistic views, optimistic opinions about meme coins remain widespread. For example, Murad points to meme coins' performance over the past month.
"Meme coins are growing on Solana and Ethereum. We are in the early stages of a meme coin supercycle," Murad stated.
Additionally, Google Trends data shows that search interest in meme coins has remained consistently high, between 75 and 100 points, throughout October. This indicates that meme coins are currently attracting new investors to the market.
Read more: 7 Hot Meme Coins and Altcoins Trending in 2024
Investor Curb uses a bubble growth model to predict that meme coins are in the early stages of this cycle. At the time of writing, meme coins' market capitalization has reached $58.3 billion, up 2.8% in the last 24 hours, according to CoinGecko.
