Altcoins
Here’s why Memecoins are outperforming most Altcoins this cycle, according to analyst Will Clemente
A famous on-chain analyst is providing a logical explanation for why memecoins have vastly outperformed most altcoins this cycle.
In a new interview with Bitcoin (Bitcoin) bull Anthony Pompliano, Will Clemente says traders are diving into memecoins because they believe it is the cryptocurrency sector that offers the highest upside potential.
Clemente points out that while other altcoins have solid fundamentals, traders ignore them because it is difficult to understand their value proposition.
“If I want to further broaden the risk spectrum, what should I invest in? There are all these very obfuscated questions, a lot of technical jargon, questions about the accumulated value for a lot of these altcoins that are mid-nine-digit or $2 billion market cap tokens.
The reality is that the average retail participant has a very low chance of getting a 10 or 15X on something like this. But they have a much higher chance of doing so with memes. So I think a lot of people who come into this space looking to speculate for the first time are participating in it.”
Clemente also says traders are flocking to memecoins because they don’t have the ability to swim with sharks.
“The group of market participants who are playing that game are much less sophisticated than the group of market participants who are trading Bitcoin… think about when you go to play poker at a table. You’re going to play with these high-stakes guys who have been playing for 25 years or you will be sitting at the table with people with the same skill level as you.
I think that’s how a lot of people think about participating in these memecoin markets as well.”
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