Meme Coins vs Blue Chip Tokens in Bearish Crypto Markets

While 95% of current cryptocurrency investors still choose BTC, meme coins were quite popular in 2021 and continue to attract investors despite increased volatility.

However, the crypto markets have been in a long-term bearish trend since reaching an all-time high last November when it had a market cap of over $3 trillion.

Investors may find it interesting to note how different parts of the crypto ecosystem have reacted compared to the larger market.

These categories include Bitcoin (BTC), Ethereum (ETH), altcoins, stablecoins, and meme coins.

Let’s focus on how the top blue-chip tokens have fared compared to the biggest meme coins throughout the prolonged crypto winter.

Bitcoin and Ethereum

BTC and ETH have consistently held the top two positions in the cryptocurrency market, together accounting for nearly 60% of the total market capitalization of all publicly traded cryptocurrencies.

In reality, they have both shown similar price behavior, with BTC and ETH falling 65% and 63% respectively from their all-time highs (ATHs).

However, long-term investors will still see a significant profit, given that both cryptocurrencies continue to trade at levels far higher than they were before COVID.

Every previous bear cycle has had a similar pattern, with both BTC and ETH finally rising to a new ATH.

Tether, USD Coin and Binance Coin

Some unexpected winners can be found in the other three slots on the top five cryptocurrency lists.

While Binance (BNB) is a cryptocurrency native to the Binance chain, USD Coin (USDC) and Tether (USDT) are stablecoins pegged to the US dollar.

Stablecoins now hold the third and fourth positions, indicating their rapid uptake in the cryptocurrency community.

Stablecoins differ from BTC and ETH by their reputation for price stability, and they rise in value in tandem with the US dollar.

In reality, USDT and USDC rise in value in tandem with the US dollar’s ongoing advance against a basket of fiat currencies.

Although Bitcoin, Ethereum and other altcoins plunged sharply from their November 2021 peaks, the market cap of both these stablecoins increased.

On the other hand, BNB has had a significant price correction while outperforming BTC and ETH.

The BNB coin is currently trading for around 52% less than its all-time high, which it reached on May 10, 2021, at $686.

The coin, whose market capitalization currently exceeds $50 billion, is a reference to the increasing number of transactions and advancements occurring in the Binance ecosystem.

Binance Chain, Binance Smart Chain, Binance Academy and Trust Wallet are just some of the blockchain-based initiatives that use the BNB coin.

Based on daily trading volume, parent company Binance is the largest cryptocurrency exchange globally and is committed to introducing new age money to the world.

Are meme coins riskier?

Characterized as cryptocurrencies that derive their influence from memes, meme coins first appeared in 2021.

Dogecoin is the most famous meme coin and has the highest market capitalization among cryptocurrencies in this category (DOGE).

The Shiba Inu dog image that served as inspiration for DOGE’s design was a popular internet meme. Elon Musk, who is sometimes referred to as the “DOGEfather”, also supports the project.

Since the ATH of $0.73 on May 7, 2021, DOGE’s values ​​have fallen by more than 90%. However, the meme coin is quite well-liked in the cryptocurrency world, especially among Gen Z investors.

Shiba Inu (SHIB), which has a market cap of $6.8 billion versus DOGE’s $9.5 billion, is the second largest meme currency.

Together with DOGE, the SHIB token has lost around 85% of its value from its all-time high of $0.000086, which it reached on October 27, 2021, contributing to the loss of billions of dollars in investor capital.

Dogelon Mars (ELON), Baby DogeCoin (BabyDoge) and Samoyedcoin (SAMO), all of which have far lower market capitalization than DOGE or SHIB, occupy the following three positions on the list of the best meme currencies.

However, the values ​​of these tokens have declined, with ELON’s price falling by 99%, SAMO’s by 92% and BabyDog’s by 82% respectively.

Unsurprisingly, the entire class of meme currencies has far underperformed other altcoins and presents a riskier investment opportunity for cryptocurrency enthusiasts.

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