Prominent crypto trader Altcoin Sherpa weighed in on the future of meme coins, saying a "meme coin supercycle" is still likely but could play out different than expected.
What Happened: Sherpa stated in a post on X that a meme coin super cycle is likely, but it will not resemble the Shiba Inu (CRYPTO: SHIB) runs of the past, which was catching up with Dogecoin (CRYPTO: DOGE).
According to him, the market is too dispersed and the liquidity not as concentrated as it was during the 2021 run-up, which "may never happen again." He believes that instead of a few coins seeing massive gains, the future will see a larger number of mid-cap coins performing well.
Sherpa suggests that investors should focus on the meme coin sector as a whole, rather than betting all their chips on a single coin like Solana (CRYPTO: SOL) or meme coins like Pepe (CRYPTO: PEPE). He concludes by reminding investors that meme coins do have fundamentals, just like regular tech coins.
Also Read: 'The Easy Days' In Crypto Are Over And Meme Coins Have Contributed To This, Says Trader
Why It Matters: Sherpa added that the market will see more likely 15 mid-caps do very well. He details that, "DOGE/SHIB are for big whales, PEPE/WIF/BONK for strong liquidity but more upside, then you get into all of the mid-caps (too many to list) where a few of them are going to go to multi-billion probably." Traders should have exposure to memes, according to this framework.
Coingecko data shows meme coin market capitalization at $52.5 billion, an 11% increase over the past 24 hours. Notably, the top performers over the past 30 days are not the meme coin leaders but newer coins launched in the small-cap and mid-cap segments.
Mid-cap meme coins like Gigachad (CRYPTO: GIGA) with $111.9 million saw a 558% gain in the past 30 days, while Popcat (CRYPTO: POPCAT) at 204% gains has a valuation of $807.5 million. Mog Coin recorded a (CRYPTO: MOG) 144% gain for a market cap of $727.5 million. Among small-cap meme coins, Zyncoin (CRYPTO: ZYN) saw 205% gains, while Zoomer (CRYPTO: ZOOMER) reported 165% gains.
What's Next: The influence of meme coins is expected to be thoroughly explored at Benzinga's upcoming Future of Digital Assets event on Nov. 19.
- Are Meme Coins Fading? Top Trader Examines The Future Of Digital Goldmines
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Image: Shutterstock