Will The Market See A Repeat Of The Dogecoin And Meme Coin Supercycle Of 2021?
Crypto analyst Altcoin Sherpa has answered the question of whether or not the crypto market will witness a repeat of the meme coin supercycle that Dogecoin and other meme coins enjoyed in 2021. The analyst is optimistic that there would be a meme supercycle but not in the way many expect it.
Will There Be A Repeat Of 2021 Meme Coin Supercycle?
Altcoin Sherpa mentioned in an X (formerly Twitter) post that the meme coin supercycle is going to happen, but not in the way many think. The analyst believes that the market won’t witness another Shiba Inu (SHIB) type of run for these meme coins. Shiba Inu is known to have made a historic price gain of 46,000,000% during the 2021 bull run.
He explained that the primary reason for such belief is because the market is “too dispersed” and that the market hasn’t witnessed the 2021 style run-up since then, further suggesting that it may never happen again. Altcoin Sherpa further mentioned that there are too many meme coins in the market, which makes it harder for any coin to shoot up as Shiba Inu did.
Altcoin Sherpa added that attention is spread out everywhere, and liquidity is not as concentrated as it used to be in 2021. He noted that this is why it is more of individual coins pumping rather than these pumps happening from a “sector-wide perspective.” The analyst’s theory isn’t only isolated to memes, as he believes that the market isn’t going to witness many of the Solana, LUNA, and Avalanche moves from any sector going forward.
What The Meme Coin Supercycle Is Going To Look Like Now
Having established that the market is unlikely to witness that kind of Shiba Inu run-up again and only a few Dogwifhat (WIF) type of rallies, Altcoin Sherpa mentioned that the meme coin traders are instead going to see “15 mid caps do very well and spread out vs highly concentrated bets.” He explained that this meant that 15 coins could witness a 10x price gain while 3 coins record a 50x type of rally. However, the analyst added that there will be some outliers to his theory.
Altcoin Sherpa urged investors to still gain some exposure to the meme coin sector as believes that there will still be some “great gains” on all of them. He remarked that market participants could find a meme that fits all risk profiles. He explained that Dogecoin and Shiba Inu are for “big whales” since the foremost meme coins have less room to run to the upside.
The crypto analyst further stated that PEPE, Dogwifhat, and BONK are also for those with strong liquidity but ones looking for more upside. Meanwhile, he added that investors could also get into all of the mid-caps, with Altcoin Sherpa claiming that a few of them are still probably going to attain a multi-billion market cap.