A popular on-chain analyst offers one reason why memecoins have vastly outperformed most altcoins this cycle.
In a new interview with Bitcoin (BTC) bull Anthony Pompliano, Will Clemente says traders are diving into memecoins because they believe it’s the crypto sector that offers the greatest upside potential.
Clemente emphasizes that while other altcoins have solid fundamentals, traders ignore them because it is difficult to understand their value proposition.
“If I want to go further on the risk spectrum, what should I focus on? There are all these very obscure, high-tech jargon questions about the value evolution of a lot of these altcoins that are mid-nine-digit billion or $2 billion market cap tokens.
The reality is that the average retail participant has a very low chance of a 10 or 15Xing something like that. But with memes they are much more likely to do this. So I think a lot of people who come into the room and want to speculate for the first time are participating there.
Clemente also says that traders are flocking to memecoins because they don’t have the skills to swim with the sharks.
“The group of market participants who play that game are a lot less advanced than the group of market participants who trade Bitcoin. Imagine you are sitting at a table playing poker. You’re going to play with these high stakes players who have been playing for 25 years, or you’re going to sit at the table with people at the same level.
I think a lot of people are also thinking about participating in these memecoin markets.”
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Generated image: Midjourney