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The total market capitalization of the memcoin sector has reached $19 billion in recent weeks; the launch of PEPE, WOJAK and others has attracted new entrants to the market. As a result, these assets experienced significant growth in value and trading volume.
In the last 24 hours, memecoin PEPE has gained 53%, while WOJAK and AIDOGE are up over 20%. Over the past week, only PEPE made a profit of 629%, while WOJAK recorded a profit of 972%, which added to the euphoria around these assets.
PEPE is rising on the daily chart. Source: PEPEUSDT Tradingview
Memcoin fever causes euphoria
Rising prices in the memcoin sector have led traders to stake most of their capital in hopes of becoming millionaires overnight. Some achieved this goal by investing as little as $20 before the memcoin explosion.
$27 $pepe wallet update:
Now worth $4,240,471.20 pic.twitter.com/jsA4BIRSms
— borovik.eth (@3orovik) May 4, 2023
One investor invested $27 in PEPE and turned capital into over $4 million in a few weeks as the token became known for its value. Cryptocurrency is not new to these stories, but Coingecko’s new data is trying to shed more light on the phenomenon.
The analytics group behind Coingecko tried to answer the following question: how much money do you need to become a Meme Coin millionaire? On average, taking into account current trend coins (PEPE, BONK, AIDOGE) and classic memcoins (DOGE, SHIB, Baby Doge) , the study concluded:
According to a yield analysis of 10 memcoins, it would take an investor an average of $66,298.25 to become a memcoin millionaire. The minimum initial investment required to reach $1 million in meme coin holdings ranges from $11.87 for Shiba Inu to $190,585.57 for ArbDoge AI (AIDOGE).
As you can see from the chart below, AIDOGE, WOJAK and PEPE needed the highest seed capital to reach millionaire status. As seen in the chart below, ArbDoge AI (AIDOGE) required an investment of $190,000 when purchased in 2023, while Classic Shiba Inu (SHIB) and Dogecoin (DOGE) required $820 when purchased in 2022 and 2013 respectively.
How to find the next PEPE, WOJAK, AIDOGE?
As these assets become popular, it becomes more difficult for early investors to see a higher return on investment. As you can see from the chart, classic memcoin investors previously needed much less capital to reach millionaire status, but much more time.
It took an early Dogecoin investor 2,701 days or 7 years to reach millionaire status, while a Bonk investor only took a week. Thus, there is an inverse correlation between initial capital and the return it would take for investors to become a millionaire with these assets. Koingeko concluded:
For the 2023 meme coins in particular, it is likely that Pepe, ArbDoge AI, Wojak, and Ignore Fud will subsequently surpass their current all-time highs. While it may take longer for them to reach higher prices, this also means that a smaller initial investment is needed to become the millionaire of this meme coin.
In the cryptocurrency industry, trends and sectors can lose popularity and gain momentum overnight. In that sense, finding the “next big thing” isn’t easy.
However, Coingecko encourages users to use Decentralized Exchange (DEX) trackers to track tokens that are seeing an increase in trading volume/price. These assets are likely to see their market capitalization and popularity grow, hinting at potential growth.