A well-known analyst on the blockchain is offering an explanation as to why memecoins have been performing exceptionally well compared to most other alternative coins this time around.
During a recent interview with Bitcoin enthusiast Anthony Pompliano, Will Clemente suggests that traders are gravitating towards memecoins because they see them as having the highest potential for growth within the cryptocurrency sector.
Clemente points out that although other alternative coins may have strong fundamentals, traders tend to overlook them due to the complexity of understanding their value proposition.
“If I’m looking to take on more risk, where should I invest? Many of these mid-to-high nine-figure or $2 billion market cap tokens have complex technical details and questions surrounding their value accumulation. The average retail investor is unlikely to see a 10 or 15-fold return on these types of coins. However, memecoins offer a much higher probability of achieving that level of return. So, many newcomers to the market who are looking to speculate are getting involved in memecoins.”
Clemente also suggests that traders are turning to memecoins because they may not have the expertise to navigate more traditional altcoin markets.
“The group of traders involved in memecoins tends to be less experienced than those trading Bitcoin. It’s like deciding whether to play poker at a table with seasoned professionals or with individuals of similar skill levels. I believe many people view participating in memecoin markets in a similar way.”
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