Top Solana Memecoins – A Significant Discount Worth Exploring?
The Perfect Example
Memecoins are perhaps the best example of a high-risk/high-reward ratio. Getting in on the right project at the right time can secure investors enormous gains, while a bad investment decision can wipe out 100% of an investor’s deployed capital. It’s pretty much an all-or-nothing scenario and one that rewards the “swift” and efficient investor. You can’t drag your feet in this space.
Generally speaking, Crypto is an extremely fast-paced industry. However, memecoins on the other hand, multiply this dynamic exponentially. Unlike altcoins, memecoins don’t always reward the HODL approach. In other words, buying the top of most altcoins is not fatal. Eventually, time is likely to “repair the damage”. This is not the case when it comes to memecoins. At least not for the majority of them.
However, when a predominant memecoin with significant volume and a fairly high market cap valuation corrects by 98% and then goes on to experience a bounce after an extended period of accumulation, it’s perhaps time to begin paying attention. This is precisely what has happened to Yotoshi (YOTO) over the past two weeks. Approximately three weeks ago, YOTO began to garner a lot of attention and eventually went into hype mode.
This didn’t last long. YOTO began an enormous correction, and eventually bottomed a lot lower than many expected. The recent altcoin “cleansing” was of course a catalyst, as well as the fact that this is standard practice for memecoins, even the ones that go on to succeed. I was studying BONK’s history, since its inception, and noticed just how many significant corrections this particular memecoin survived on its way to the top.
Despite experiencing an enormous correction, BONK still has a rather significant market cap valuation, as well as a pretty healthy trading volume. Right off the bat, BONK experienced a 70% correction, and that wasn’t the last. BONK went on to experience multiple corrections along its eventful journey to memecoin dominance. The chart below details BONK’s initial crash, and serves to prove that you can never write off a memecoin based on its initial price action.
Currently, YOTO is in a position that warrants the attention of those who believe they missed out on its initial surge. Yesterday, YOTO rallied approximately 300% from the current lows. Looking at the chart below, it might look a lot less than that. However, it’s simply an indication of just how far this particular memecoin has corrected. Within a matter of weeks, YOTO has corrected by approximately 98% and is perhaps now offering an acceptable risk/reward ratio.
Some, like myself, have chosen to take a gamble on YOTO. If YOTO continues to edge higher, I will look at growing this position as it corrects along the way. For now, it’s a small position and one I am monitoring closely, as it could offer some healthy gains once the market regains its upward momentum. Another top Solana-based memecoin in a similar position is analoS, pictured below.
AnalosS experienced an enormous amount of hype, a lot more than YOTO experienced, and is another top memecoin I have chosen to take a small gamble on. Once again, a continuation to the upside will warrant further allocation. However, for now, it’s in a similar position to YOTO. At this point, everyone is eagerly awaiting the ETF outcome this week, so the market appears to be a little jittery.
Final Thoughts
Depending on your risk tolerance, this might be an attractive idea. On the other hand, it might be something you are likely to ignore. Either way, the risks are real, and anyone looking to invest in memecoins should consider a deployed capital allocation into this particular sector a gamble, and nothing more. If it pays off, great… if it doesn’t, it’s not the end of the world. Even in the case of doing your research, it’s incredibly risky. Anyway, catch you next time!
Disclaimer
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This article was first published on Sapphire Crypto.