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Cryptocurrency Bear Hug: Evaluating Performance of Meme Tokens and Blue-Chip
Economy MilkywayBlogs 31-Aug-2022 Comments (0) 29

Cryptocurrency Bear Hug: Evaluating Performance of Meme Tokens and Blue-Chip

While meme coins continue to be the interest of people as they have performed worse than other cryptos. It makes a riskier proposition for the investors of crypto. 

The crypto market has exponentially evolved since Bitcoin initially came into existence in the year 2009, with investors and traders having access to more than 20,000 unique tokens to choose from. 

With the increased interest in blue-chip tokens, meme coins have sparked huge interest among investors in the current year and continue to be of interest even now, despite their volatility. 

However, to reach a peak with a combined market capitalization of $3 trillion in November 2021, cryptocurrency markets have existed in a prolonged bear phase. 

Comprising BTC, altcoins, stablecoins, Ethereum (ETH), and meme coins, big investors find it interesting to know how this crypto space has behaved relative to the market. 

Now, let us focus on how blue-chip has performed as compared to the meme coins during this crypto winter. 

Bitcoin and Ethereum 

These are the top two spots of the crypto market that have always been reserved for ETH and BTC, together contributing over 60 percent of the whole market cap of the listed cryptocurrency space. 

In fact, they show similar performance, with ETH and BTC that have dropped by 65 % and 63%, respectively, from their ATH. 

However, most long-term investors are still sitting with a healthy profit considering cryptocurrencies will continue to trade above pre-COVID levels. 

These statistics have been repeated every past with the bear cycle, with both ETH and BTC that are eventually moving towards ATH. 

USD Coin, Tether, and Binance Coin 

There are three spots in the list of top cryptocurrencies that have some winners. While both USD Coin (USDC), and Tether (USDT) are stablecoins that are pegged to the Binance (BNB) and US Dollar (USD) which are the cryptocurrencies native to the Binance chain. 

The surprising fact is that the 3rd and 4th spots held by these stablecoins are reflective of the meteoric rise in stablecoins by the crypto community. Compared to ETH and BTC, stablecoins are known for their stability in prices, and their rising value in line with USD. 

As the USD continues to appreciate fiat currencies, both USDC and USDT have gained value accordingly. 

Both of these stablecoins saw the rise in market caps when ETH, BTC, and other altcoins fell precipitously from the peak of November 2021 peaks. 

On the other hand, BNB has seen a sharp price correction, although better than ETH and BTC. 

The meme token commands a market cap exceeding $50 billion currently Which indicates the increment in developments and transactions taking place in the ecosystem of Binance. 

The BNB token is an integral part of Binance’s blockchain projects, such as the Binance Smart Chain, Binance Academy, Binance Chain, and Trust Wallet. 

The parent company Binance is one of the biggest cryptocurrency exchanges globally based on the volume of daily trading that is determined to bring the world’s new-age finance. 

Meme Coin’s Curious World  

Cryptocurrencies take inspiration from the memes and meme coins that really burst onto the scene. 

The most popular meme coin having the largest market cap in the cryptocurrency class is Dogecoin or DOGE. They reached an ATH of $0.73 on May 7, 2021. DOGE has also seen its prices erode by more than 90 percent ever. Regardless, meme coins are extremely popular in the community of crypto among Gen Z investors, especially. 

As DOGE, the SHIB token has also fallen by around 85% from the ATH of $0.000086. With DOGE, it destroys billions of dollars in the wealth of investors. 

However, these meme tokens have seen prices fall by 99 percent for ELON, 82 percent for BabyDoge, and 92 percent for SAMO respectively. 

It is necessary to say that the entire class of meme coins is far worse than altcoins, which offer a riskier proposition for the investors of cryptos. 

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