In a groundbreaking survey by AMBCrypto, insights from 7,259 memecoin investors reveal the rapidly evolving landscape of cryptocurrency investment, particularly in memecoins like SHIB and DOGE.
The survey highlighted a dominant trend of short-term investment strategies among memecoin traders, with 35% holding their investments for only a few weeks. In contrast, a smaller segment, 9%, opts to sell their coins immediately upon price increases.
Short-term traders' investment strategy
Memecoin traders largely favor a diversified investment approach, with over half (53%) spreading small amounts across multiple coins, aiming for high returns. This "scattershot" strategy contrasts with the 43.5% who conduct thorough research before committing funds, indicating a split between risk-takers and more cautious investors.
The survey also unearthed a generational divide, with younger investors (18-24 years) showing the highest enthusiasm for memecoins, while interest wanes among those in their early 30s and beyond. This trend suggests memecoins may appeal less to older investors, with only 9.5% of respondents over 55 years old engaging in memecoin trading.
Key findings also revealed that 43% of participants value real-world use cases when investing in memecoins, whereas 47% consider hype and community engagement as crucial factors. Interestingly, nearly 38% of respondents made their first memecoin investment within the last month, highlighting a potential peak in new investor interest. Now, just as memecoins are getting more popularity of late, Bitcoin as well has been getting more traction even after recent losses.
A look at the broader market
In the broader crypto market, Bitcoin and Ethereum have shown significant movements. Bitcoin ETFs are increasingly absorbing a larger portion of the market supply, with a current hold of 4.33% and an annual absorption rate of 2.43%. This trend, coupled with a capped creation rate of less than 1% per year, suggests a potential rise in Bitcoin prices to $75,000 by the end of July.
Conversely, Ethereum has seen a decline in large-scale investors, with the number of addresses holding over $100,000 worth of ETH dropping from 144,557 to 134,319 within twelve days. This shift occurred as Ethereum's price reached $3,800, amidst uncertainties regarding Ethereum ETFs.
Lastly, the NFT market is experiencing a downturn, with a 49.42% drop in sales volume over the past month, despite a slight increase in the number of holders. This indicates a cooling interest in NFTs among investors, amidst a fluctuating crypto market landscape.
