dailyhodl.com
A popular on-chain analyst is providing a rationale for why memecoins have massively outperformed most altcoins this cycle.
In a new interview with Bitcoin (BTC) bull Anthony Pompliano, Will Clemente says that traders are diving into memecoins because they believe that it’s the crypto sector that offers the highest upside potential.
Clemente highlights that while other altcoins come with solid fundamentals, traders ignore them because it is difficult to understand their value proposition.
“If I want to go further out on the risk spectrum, what should I allocate to? There’s all these very highly obfuscated, a lot of technical jargon, questions about the value accrual for a lot of these altcoins that are mid-nine-figure billion or $2 billion market cap tokens.
The reality is the average retail participant has a very low likelihood of a 10 or 15Xing something like that. But they have a much higher probability of doing so with memes. So I think a lot of people that are coming into the space looking to speculate for the first time are participating there.”
Clemente also says that traders are flocking into memecoins because they don’t have the skill to swim with the sharks.
“The pool of market participants that are playing that game is a lot less sophisticated than the pool of market participants that are trading Bitcoin… think about you’re going to go play poker at a table. You’re going to go play with these high-stakes guys that have been playing for 25 years or you’re going to go sit at the table with people on your same skill level.
I think that’s how a lot of people are thinking about participating in these memecoin markets as well.”
Generated Image: Midjourney