The total market capitalization for the memecoin sector reached $19 billion in the past weeks; the launch of PEPE, WOJAK, and others have attracted new participants to the market. As a result, these assets have experienced a massive surge in value and trading volume.
Over the last 24 hours, memecoin PEPE saw a 53% profit while WOJAK, AIDOGE, have experienced rallies of over 20%. Over the past week, PEPE alone saw a 629% profit while WOJAK recorded a 972% profit increasing the euphoria around these assets.
Memecoin Fever Triggers Euphoria
The increase in the price of the memecoin sector has seen traders betting a large portion of their capital in the hopes of turning into millionaires overnight. Some achieved this goal by investing as little as $20 before the memecoin explosion.
$27 $pepe wallet update:
Now worth $4,240,471.20 pic.twitter.com/jsA4BIRSms
— borovik.eth (@3orovik) May 4, 2023
One investor put $27 into PEPE and turned the capital into over $4 million in a few weeks as the token entered price discovery. Crypto is no stranger to these stories, but new data from Coingecko is trying to shine a bigger light on this phenomenon.
The analysis team behind Coingecko attempted to reply to the following question: How much money do you need to be a Meme Coin Millionaire? On average, and taking into consideration the current trending coins (PEPE, BONK, AIDOGE), and the classic memecoins (DOGE, SHIB, Baby Doge), the study concluded:
An investor would have needed $66,298.25 on average to become a meme coin millionaire, according to an analysis of 10 meme coin price returns. To reach $1 million in meme coin holdings, the minimum initial investment that is needed ranges from $11.87 for Shiba Inu, to $190,585.57 for ArbDoge AI (AIDOGE).
As seen in the chart below, AIDOGE, WOJAK, and PEPE, needed the highest initial capital to reach millionaire status. As seen in the chart below, ArbDoge AI (AIDOGE) required a $190,000 investment if buying them in 2023, while classical Shiba Inu (SHIB) and Dogecoin (DOGE) needed $820 if buying in 2022 and 2013, respectively.
How To Find The Next PEPE, WOJAK, AIDOGE?
As these assets become mainstream, it is harder for early investors to see a higher investment return. As the chart shows, earlier investors in classical memecoins needed much less capital to reach millionaire status but much more time.
In order to achieve millionaire status, an early Dogecoin investor needed 2,701 days or 7 years, while a Bonk investor needed but a week. Thus, there is an inverse correlation between initial capital and the take it would take investors to become a millionaire with these assets. Coingecko 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. Although they might take longer to reach higher prices, it also means that a lower initial investment is needed to become that meme coin’s millionaire.
In the crypto industry, trends, and sectors can lose popularity and gain overnight. In that sense, finding the “next big thing” is challenging.
However, Coingecko recommends that users leverage decentralized exchange (DEX) trackers to monitor the tokens experiencing a surge in their trading volume/price. These assets are the most likely to see an uptick in their market cap and popularity, hinting at a potential bull run.