Hype and trends can replace actual utility in the market value.
Investors, especially inexperienced ones which make up the bulk, FOMO into assets when hype goes up. It's a rat race to get in and get a share while the hype exists, this surge in demand increases the perceived value and results in the sky rocketing prices.
Hype can last for a short time, or a much longer one as we can see with meme coins like doge and Shiba. I can't particularly explain why they have lasted this long.
Note, I'm not saying all who invest in hype are naive investors as there is potential for ROI in there, and with a calculated risk one can profit from them.
Topic: Can anyone explain what is the value of meme coins? - page 6. (Read 568 times)
I am confused that there are meme coins whose prices are sky rocketing but I dont see any real value these meme coins are providing
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