Benzinga - by Khyathi Dalal, Benzinga Staff Writer.
Twitter personality WazzCrypto recently shared his apprehensions about the current state of the cryptocurrency market, suggesting that the conditions are not as favorable as they were in 2021.
What Happened: WazzCrypto took to his X account to highlight the prevalence of overvaluation in the market, with many new projects launching with valuations exceeding $10 billion. He also pointed out instances of venture capital scams emerging after the last market crash.
ngl I think this cycle is kinda cookedwe almost deluded ourselves into thinking $10B+ launch valuations were normal and acceptable, the last crash also lifted the veil into many of these VC scams
to add to the mix, influenzas made sure to funnel most new money into their meme…
— Wazz (@WazzCrypto) April 22, 2024
Additionally, WazzCrypto discussed the impact of memes on market sentiment and the influx of new money into the cryptocurrency space. He noted that while institutional involvement in Bitcoin (CRYPTO: BTC) has increased, resulting in reduced volatility, this trend may not necessarily benefit all alternative cryptocurrencies.
He indicates that while some will experience "great outperformance" others could struggle due to oversaturation and a lack of funding, leading to a competitive and fragmented market.
He suggested that this could result in extended periods of sideways movement, with potential profit opportunities in yield farming.
Also Read: Dogecoin, Shiba Inu And Who Else? How Meme Coins Have Evolved Since The Last Bitcoin Halving
Why It Matters: While WazzCrypto remains fully invested in the market, he hinted at the possibility of adopting more aggressive profit-taking measures in the future, depending on market conditions. He cautions that while his market estimate could be right unless "something structural about the market changes until the end of the year."
While he calls Bitcoin the "saving grace" and the trend upward to reduce volatility, he also sees the effect trickling down to the altcoins. However, he says, "I think the rising tide will only lift some boats, not all."
Notably, Dogecoin (CRYPTO: DOGE) and Shiba Inu (CRYPTO: SHIB) remain prominent players in the meme coin space, but newer meme coins have also entered the market with significant gains, reshaping the landscape of meme coin investments. The top 10 meme coins board has also witnessed a major shake-up in the past one year.
What's Next: The influence of meme coins and Bitcoin as an institutional asset class are topics expected to be thoroughly explored at Benzinga's upcoming Future of Digital Assets event on Nov. 19.
Read Next: What DOGE And SHIB Holders Can Learn From This Meme Coin Millionaire’s Trading Strategies
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Image: Shutterstock
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.