In-depth analysis of the relationship between cryptocurrency and memes!

Kabir903

An in-depth analysis of the relationship between cryptocurrency and memes!

Technology represents rationality, driven by efficiency. Emotions represent sensitivity, an externalization of feelings. Besides rationality, people also have emotions. In the cryptocurrency field, apart from blockchain ledgers, there are various emotional expressions, and memes embody these aspects.

In the cryptocurrency realm, most individuals are not developers, scientists, researchers, or investors; they are non-professional players from different backgrounds. Most players may not delve into understanding the underlying logic of technology or trend changes, but they can sense market sentiment and grasp the underlying culture. Therefore, narratives that are simple enough often carry more power. For example, descriptors like "Bitcoin" require no overly complex knowledge to understand and are easy to spread. Because of this characteristic of humans, memes have always been a consistent presence in the cryptocurrency field.

All cryptocurrency tokens have meme content.

In a sense, the entire spectrum of cryptocurrency tokens falls within the realm of memes, albeit with varying degrees of content.

The relationship between memes and prices varies over time.

The relationship between meme content and prices is complex and varies over different periods. It differs during bull and bear markets, and even within different periods of a bull market, it can vary. Sometimes, higher meme content can lead to higher valuations, while at other times, the opposite may be true. For example, during the peak narrative of a bull market, high meme content may push up valuations, but the opposite is true in a bear market. At a certain point in a bull market, when the narrative trend wanes and fundamental value is highlighted, high meme content may not be conducive to raising valuations.

Genuine memes are extremely rare.

Currently, most cryptocurrency projects rely on narratives driven by technology and fundamentals to sustain themselves, while genuine memes can completely disregard these factors. Apart from memes with 99.9% purity, other projects with meme content essentially rely on subsequent narratives of technology and fundamentals for transformation and support; otherwise, they may gradually decline.

Memes themselves also have phases.

There are few memes that can span a single cycle, and memes that can survive two or more cycles have a greater chance of persistence. Nevertheless, just as new projects driven by technology continuously emerge and fluctuate, MEMECOINs will also constantly emerge and fluctuate in new periods.

Conclusion

In simplified terms, almost all cryptocurrency tokens are more or less meme coins, but with varying levels of meme content. The correlation between meme content and prices varies over different periods, depending on narrative and emotional changes.

Jiger955

This relationship needs to be understood.

Kamal531

These relationships also need to be understood.

Shri

Regardless, it's necessary to learn how to play rationally.

Pooja193

As long as it's for money, rationality is more important than technology.