In recent times, especially with the two big media hype of coins such as Dogecoin and Shiba Inu, we have constantly been hearing about meme coins. These coins started off as some sort of funny phenomenon or a joke in the world of digital currencies but found support from large communities on the Internet with time and began to attract the attention of investors. Despite the initial successes achieved in some of them, the future growth opportunities of some of these coins started to seem weak, and that is for several reasons.
One of the most important reasons which make the growth opportunities of meme coins weak is that they actually do not offer any real value or innovation in the field. Major currencies like Bitcoin and Ethereum have a very sound technological backbone, so they are part of a blockchain network offering real solutions for big problems of both the financial and technological worlds. In the case of the meme coins, they rarely represent new technologies or fresh solutions; thus, building solid ground on which to foster long-term, sustainable growth is not very easy. Hype would likely be driving them forward.
What really makes meme coins successful for some time is the hype and online communities, big ones being Twitter or Reddit. When famous people like Elon Musk or other celebrities talk about a certain coin, they literally call people to buy the coin en masse, but with this, they create a state of unsustainable inflation. This hype, when it dies down or when the support from big figures goes down, the prices start falling sharply. This makes most meme coins unsustainable in the long run.
The reasons that make growth opportunities weak include high price volatility. Meme coins experience huge fluctuations, and it is pretty easy to find the coin falling significantly or rising up suddenly due to news or rumors. It is this type of volatility that makes investing in these kinds of coins highly risky, which in reality makes them unsuitable for investors who look to invest for the long term.
Also, most of the meme coins don't have real purposes that other coins would provide, serving in practical aspects such as DeFi or smart contracts. Their main goal usually will be having fun or quick returns but with no evident project based on it for long-term investment.
Meme coins don't bring any real value or new solution, so their prospects for future growth look quite weak. Without innovation, practical application, and being highly volatile, it's hard to see them as a plausible investment choice in the future. As a matter of fact, meme coins will likely always be a fad with no continuity in comparison with really valued and strong technologies such as Bitcoin and Ethereum, which form the basis of movement into the future.