Only 10 out of 750 meme tokens on Solana showed 20x growth
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Johny Smith
2024/11/16
3 mins read
An analysis of meme-cryptocurrencies on the Solana blockchain conducted by the 0xScope team shows that trading such digital assets remains an extremely difficult and risky activity. According to researchers, many factors often depend on market volatility and sharp fluctuations caused by hype and user activity on social networks. According to experts, although meme cryptocurrencies essentially have no fundamental value, traders are attracted by the potential for multiple growth, despite the high risks.
According to the study, to catch significant gains, meme tokens first go through a decline of about 40%. This psychologically makes it difficult to make decisions, because it is difficult to understand whether to hold on further, taking risks, or take profits, for fear of missing out on a possible jump. The optimal retention time is only 1-2 days. Short-term strategies focus on early waves of volatility, when the chances of making money are greatest.
Investors are advised to focus on capital preservation rather than chasing long-term returns. Data suggests that holding meme tokens for an extended period of time does not provide statistical benefits and often results in losses. Such a market must be approached with caution, with an emphasis on limiting losses.
Important reminder: a small portion of meme cryptocurrencies reach sky-high levels. Among the 750 meme-cryptocurrencies on Solana, only 10 were able to give a 20-fold increase. This highlights how difficult it is to choose a winner yourself. Experts recommend using AI tools like Scopechat to analyze signals and discover promising tokens in the meme token category, as well as other tools that offer AI-based expertise for analysis.
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