- Crypto markets hold steady after the midweek shake-up.
- Cardano’s Nike memecoin token defies crypto slump.
- Memecoin investment presents real risks.
Memecoins have found a unique place in rallying strong community support while keeping things light and fun. Even though most will fade away into nothingness, investors continue to dive in, unfazed by the risks associated with memecoin investing.
Sponsored
Cardano’s Nike memecoin is the latest to steal the spotlight, soaring an impressive 130% over the past day. While the exact cause of the surge remains unclear, it underscores the unpredictable nature of memecoins.
Cardano’s Nike Soars
While Solana and Tron are usually the go-to platforms for memecoins, Cardano is breaking the mold. Its Nike memecoin has surged an impressive 132% in the past 24 hours at the time of writing, reaching a five-week high of $0.00338564.
Cardano memecoin Nike surges, per CoinGecko
In comparison, established projects , like Dogecoin and Shiba Inu, saw flat performances, suggesting investors remain cautious after the midweek sell-off
The Nike team has not shared any new developments or important announcements, but they’ve continued to post a steady stream of pig-related memes, contributing to the hype.
High Risk, High Reward
While memecoins have the potential for incredible returns, they’re also notoriously high-risk plays, with investors at risk of pump and dumps, rug pulls, and extreme downside volatility.
A recent Chainplay report revealed that, on average, 2,000 memecoins die every month and that 97% of all memecoins projects ever created are now defunct. Still, the researchers noted that the allure of quick profits keeps investors coming back for more.
On the Flipside
- Nike has a relatively small fully diluted valuation (FDV) of 7.71M ADA ($2.6M,) making three-digit percentage gains not uncommon.
- The popularity of memecoins can divert resources from projects focused on real-world applications.
- SNEK is Cardano’s biggest memecoin with a 183.6M ADA ($60.6M) FDV.
Why This Matters
Nike’s unexpected rally serves as a reminder of cryptocurrencies’ volatile and often irrational nature, especially regarding memecoins.
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