Posted: December 16, 2024

• Memecoins have struggled to outpace their rivals by failing to establish themselves as a true store of value.
• Now, it seems they’re losing ground on other fronts as well.

While most coins have rallied on the news of Trump returning to the White House, memecoins have struggled to keep up, sparking yet another debate on their lack of long-term value.  Given the performance of other altcoins, that argument might actually hold some weight.

Still, it may not be too late for a shift—memecoins have proven resilient before, thriving on community support and hype. The real question now is: can that same hype drive a shift in momentum, or are we witnessing the start of a trend where memecoins finally lose their appeal for good?

Largest memecoin may be losing its biggest asset

To truly grasp the volatility of these tokens, Dogecoin [DOGE] stands out as the perfect example. While many still associate DOGE with the buzz from high-profile endorsements, it might be losing its most powerful asset – the backing it once had.

Even with a government department named after this dog-coin, the price impact? It never really took off. In fact, the $1 price target seems to be slipping further out of reach.

Could this be a turning point for DOGE? A moment where its community moves beyond the hype and evolves into something more meaningful  – a group with a long-term vision?

For now, the answer seems a clear ‘No.’ A quick glance at its price chart tells the story – it’s still highly speculative. One red candlestick is all it takes to erase the gains from a whole string of green ones. 

As the largest memecoin, with a market cap bigger than that of other meme-tokens combined, it’s hard to see memecoins overtaking altcoins anytime soon.

These coins are easy target of market manipulation

In a recent report, AMBCrypto exposed how major players with huge stakes are keeping DOGE trapped in its consolidation phase, using a classic manipulation strategy to prevent any breakout.

This brings us to a crucial point: Memecoins, like DOGE, rely heavily on community support to thrive – but ironically, it’s this very dependence that causes their wild price swings.

Take PEPE, for example. With a market cap of $9 billion, nearly “half” of its holdings are controlled by whale wallets, accounting for about 190 trillion tokens. These whales hold the power to move the market at will, tipping the scales in their favor.

What’s even more striking is the scale of their transactions – whether buying or selling – often in the billions or even trillions. 

This textbook manipulation strategy, where they buy at a discount and sell at a premium, keeps memecoins trapped in a volatile cycle, leaving the market in a constant state of uncertainty and retail investors on edge.

With all this in mind, predicting that these coins will hit new highs next year might be a bit of wishful thinking. 

Read Dogecoin [DOGE] Price Prediction 2024-2025

The reasoning is clear: beyond losing their appeal as ‘real-use-case’ assets, memecoins are struggling on multiple fronts.

Big players manipulate the market, stifling their true potential, while their failure to evolve into a true store of value leaves the door wide open for altcoins to dominate.