Memecoins, as a special category in the cryptocurrency market, have attracted considerable attention from investors. This article will analyze the investment logic and strategies of memecoins from multiple perspectives.
Beta Strategy
Some memecoins have a high beta value against Layer 1 assets, which can provide a leveraged effect without using leverage. Taking BONK as an example, when its 30-day beta exceeds the 90-day rolling beta, a significant rise often occurs.
The price trend of BONK is closely related to SOL, but during periods of strong performance, this correlation may weaken. Overall, BONK can be seen as a high-risk/high-reward bet on SOL.
On-chain Data Analysis
On-chain data can reflect the underlying quality and beliefs of holders. We compared the following metrics of several major memecoins:
Token holder 90-day growth rate
Median and Average Holdings
The ratio of holding over $1000 and $100k
Large Holder Retention Rate
Large Holder DEX Net Inflow/Outflow
These indicators help assess the holder structure of memecoins and investor confidence.
Other Considerations
In addition to on-chain data, we also focus on:
Trading Liquidity
Experienced multiple significant pullbacks
Open Interest
Community and Faith
High-quality memecoin projects usually have:
Resonant narratives and slogans
Strong sense of community belonging
Effective leadership and coordination
High cultural integration
Outstanding marketing ability
Valuation Method
The "fair value" of a memecoin can be assessed in the following ways:
MVRV Ratio: When it is below 1, it may be a buying opportunity.
RSI Indicator: Close to 30 is oversold, close to 70 is overbought
Moving Average: Consider buying when the price breaks through key support levels.
Google Search Trends: Reflecting Public Interest
Macroeconomic Environment
Memecoins are highly dependent on the liquidity environment and need to be assessed in conjunction with the overall market risk appetite.
Conclusion
This article provides a framework for investing in memecoins, covering various aspects such as target selection, valuation, and timing of buying and selling. Nevertheless, investing in memecoins still carries high risks, and investors need to exercise caution.
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
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LayerZeroHero
· 09-01 18:05
So it's just about shaking off the suckers.
View OriginalReply0
Whale_Whisperer
· 08-31 09:17
Analyzing this shitcoin?
View OriginalReply0
ForkTrooper
· 08-30 02:53
Once you've played, you'll understand. Don't persuade others if they don't want to play.
View OriginalReply0
CryptoCrazyGF
· 08-30 02:50
Pump a shitcoin and it becomes investment theory?
View OriginalReply0
MEVHunter
· 08-30 02:48
ngmi with these beta strats... real alpha is in the mempool
A Comprehensive Guide to Memecoin Investment: A Multi-Dimensional Strategy from On-Chain Data to Community Analysis
Analysis of Investment Strategies for Memecoins
Memecoins, as a special category in the cryptocurrency market, have attracted considerable attention from investors. This article will analyze the investment logic and strategies of memecoins from multiple perspectives.
Beta Strategy
Some memecoins have a high beta value against Layer 1 assets, which can provide a leveraged effect without using leverage. Taking BONK as an example, when its 30-day beta exceeds the 90-day rolling beta, a significant rise often occurs.
The price trend of BONK is closely related to SOL, but during periods of strong performance, this correlation may weaken. Overall, BONK can be seen as a high-risk/high-reward bet on SOL.
On-chain Data Analysis
On-chain data can reflect the underlying quality and beliefs of holders. We compared the following metrics of several major memecoins:
These indicators help assess the holder structure of memecoins and investor confidence.
Other Considerations
In addition to on-chain data, we also focus on:
Community and Faith
High-quality memecoin projects usually have:
Valuation Method
The "fair value" of a memecoin can be assessed in the following ways:
Macroeconomic Environment
Memecoins are highly dependent on the liquidity environment and need to be assessed in conjunction with the overall market risk appetite.
Conclusion
This article provides a framework for investing in memecoins, covering various aspects such as target selection, valuation, and timing of buying and selling. Nevertheless, investing in memecoins still carries high risks, and investors need to exercise caution.