Meme-coins were all the rage in 2021 after Tesla CEO Elon Musk announced he purchased an undisclosed amount of Dogecoin. The crypto breached the 1 Cent mark and skyrocketed to $0.73 in less than three months post his announcement. The frenzy to buy Doge reached its peak with new investors flocking into the crypto markets from around the world. Thousands of meme-coins were born in 2021 after Dogecoin’s success and sprung up like mushrooms in the crypto markets.
There was no dearth of tokens ending with ‘Inu’ in 2021 associating it with dogs, and cats, among other animals. The meme tokens rallied heavily in 2021 and early investors gained the maximum returns.
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However, meme coins that were touted to go ‘to the moon’ crashed dramatically to Earth in 2022. The tokens barely moved in the indices and are down more than 90% from their all-time highs of 2021.
The meme-cryptos have no use cases and are trading in the indices with their whims and fancies. 2022 is the worst year for meme-coin holders are the bear markets proved that the tokens are nothing but a joke.
Are Meme-Coins Back in Business in 2022?
Dogecoin doubled in price last week and went from $0.06 to $0.15 remarkably. Elon Musk’s Twitter takeover is to be credited to Doge’s sudden spurt in price. Doge pulled the other meme coins up along with it reaching new monthly highs last month.
However, let’s not confuse the price spike as a return of meme-coins glorious days of 2021. The markets are in choppy waters with the bears having a tight grip. Meme-coins can slip in price and head south as they’re up only due to Musk’s Twitter antics.
Once the dust settles down on the Twitter news, meme-coins are left at the mercy of the harsh market conditions. Therefore, taking an entry position now in the hopes of meme-coins ‘mooning’ could be a bad decision. It is highly unlikely meme-coins would ever spike in price the way they did in 2021.
That boat has sailed and hype about meme-tokens has fizzled out. Investors are looking out for use cases in cryptos and joke coins offer nothing.
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At press time, Dogecoin was trading at $0.14 and is up 0.5% in the 24 hours day trade. It’s down 80.4% from its all-time high of $0.73, which it reached in May 2021.