- Meme tokens such as DOGE have underperformed in 2023.
- Most themed assets lack fundamentals and use cases to serve as long-term investments.
Meme coins are underperforming in 2023. While Dogecoin and Shia Inu gained 21% and 37% since the year started, other digital currencies have performed far better. For instance, Ethereum and Bitcoin gained 59% and 82% since January, respectively.
While such underperformance could be severe in asset classes such as equity markets, the case seems different in crypto. Some community members believe Dogecoin prices will eventually hit $1. Nonetheless, the reality could be bitter to swallow.
Meme Coins Underperform
While meme tokens are highly speculative, they emerged with hopes of nearly unlimited surges. In 2021, Dogecoin saw a remarkable 14,000% surge to hit an all-time high of around $0.74. Tesla billionaire Elon Musk cheered the leading themed crypto to its record peaks.
However, that has changed. While Musk remains an active crypto fan, hit impact has reduced. For instance, DOGE gained 30% within a day when the CEO switched the Twitter logo to a Shiba Inu dog cartoon. However, the altcoin could not retain the upside, and prices plunged relentlessly.
New Meme Coins Mimic Old Ones
Indeed, developers have tried to polish the image of canine-themed cryptocurrencies. Older meme tokens had nothing as a backup except speculation, buzz, and hype. Meanwhile, creators have focused on utility with their new projects.
However, new meme coins behave similarly, recording wild price surges and massive crashes. The lately trending token PEPE saw an impressive rally before a substantial slump. Furthermore, most dog crypto projects fail to fulfill their promises, i.e., increased use cases.
Should You Purchase Meme Coins?
Renowned meme coins such as Dogecoin have proven to lack value. Creators should launch projects with real-world utility to attract community interest. However, these assets will likely keep underperforming.
Therefore, meme tokens aren’t a lucrative investment in 2023. Besides their risky nature, themed assets have wildly underperformed this year, and that might deteriorate your portfolio. The crypto market has multiple options at your disposal. Research and invest wisely.
