How to Pick the Strongest Memecoins in the Space

Crypto has been around for over a decade. During this time, every bull run brings with it new narratives into the space.

Crypto has been around for over a decade. During this time, every bull run brings with it new narratives into the space.

In 2017, it was ICOs. In 2021, it was DeFi, GameFi and NFTs. So, what could be next for 2024’s bull run? One narrative that could be very strong is memecoins.

Now, before you dismiss this as a joke or something that’s not worth your time, let us explain. Memecoins are a class of cryptocurrencies that have little to no utility or value-add to the crypto space. They’re full of scams, and they don’t solve any problems.

So why are they gaining so much popularity now? Well, the short answer is that they’re fun and engaging.

People like to own memecoins because they can quickly make you a lot of money if you get in early and get out at the right time. And, they also have a strong community that can help you along the way.

If you're looking to get into memecoins, there are a few things you should keep in mind.

First, they're highly volatile and risky, so only invest what you can afford to lose. Second, do your own research before buying any memecoin. And finally, have fun! Memecoins are supposed to be enjoyable.

Now that you understand why memecoins are the space to get into right now, let's quickly show you a few simple steps below to help you sieve out the gems from the rough.

Step 1 — Strong Community and CultA strong community and cult improves the chances of survival for a memecoin. To check for this, look out for:

A mascot that is easily recognizable and used by the community, like Pepe the Frog for $PEPE.

Social media presence on platforms like Twitter, Telegram, and Discord. For example, $SHIB has a Telegram group with over 200k members.

Events and activities organized by the community, like airdrops or competitions. For instance, $DOGE had a Valentine's Day event in 2023.

Step 2 — Token DistributionTo check this effectively, you can use the free version of Bubblemaps here: Key in your memecoin and the chain in which it resides. Then, check for the distribution of its tokens.

If the bubble map looks colored, clustered, and large, many tokens are held by a few entities. That means a dump is highly likely.

In short, look for distributions that are even (the bubble map is dark) and not clustered (bubbles not connected).

Step 3 — Token HoldersSolid memecoins have token holders that are increasing over time. Look for an uptrend in some holders by looking at block explorers like Etherscan. You can see an example using $PEPE as shown below:

Step 4 — Volume and LiquidityLook for memecoins with high volume and matching high liquidity. This is especially true for memecoins with over a $100 million market cap. In a nutshell, look for:

High trading volume on decentralized exchanges (DEXes) like Uniswap or Pancakeswap.

Liquidity that is deep and not shallow. You can check this on platforms like DexScreener.

Step 5 — Past HistoryMemecoins that have survived a huge dump of about 80% are likely to do well if and only if:

They have recovered at least 50% from the bottom. For example, $SHIB had a dump of over 80% in 2022, but it recovered by over 100% in 2023.

There were no signs of manipulation or scams during the dump. For instance, $ELON had a dump of over 90% in 2022 due to scams.

ConclusionAlright, we’ve come to the end of this guide on how to pick out the strongest memecoins in the space. But, a word of caution before you go full degen.

The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted risk tolerance levels of the writer/reviewers and their risk tolerance may be different than yours. We are not responsible for any losses you may incur due to any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. Copyright Altcoin Buzz Pte Ltd.