Meme coin prices are on a roll, with broad-based appreciation in values pushing the sector's market cap over $22 billion, led by week gains for top sector coins such as Shiba Inu (SHIB), Baby Doge Coin (Baby Doge), Bone ShibaSwap (BONE) and Tamadoge (TAMA).
What’s behind the meme coin redux and can the bullish turn in sentiment be maintained?
The attraction of meme coins is centered on their brand power. As the rekindling of interest in crypto gathers pace it is not surprising that this sector should start to attract buyers.
However, the first iteration of meme coins, which was very much built around the joke status of Dogecoin and the pulling power of Elon Musk, has moved on.
These days investors are taking notice that a small band of meme coins are starting to build real utility into their protocols, thereby differentiating themselves from the pack.
Market visibility that can crossover into the mainstream is a powerful value proposition – providing it is ultimately be based on leveraging blockchain technology to deliver useful products with cash flow.
Meme coins offer the chance of 10x gains or more, which makes them attractive altcoins
Bitcoin has undoubtedly led the market higher this year, in a revival that has taken some by surprise.
But, as is often the case, and seen in previous cycles after the early advent of a bullish upturn, investor interest begins to focus on better risk-reward opportunities lower down the market cap rankings.
In other words, the possibilities of 10x returns in meme coins are much more realistic, over the short to medium term, than a bull run in the bitcoin price over the next few months.
In the past seven days alone BONE is up 32% at $1.78; BabyDoge is an incredible 82% higher at $0.000000002583, Shiba Inu is advancing 20% to $0.0000144, while Tamadoge has soared 50% to $0.02201.
Interestingly, Dogecoin is a relative laggard. The top dog in the meme coin sector by market cap has added a relatively modest 4.7% over the past week to reach $0.0921. However, it rose steadily in January, showing a gain of 30%.
Underpinning the strength of the rally is the rise in trading volume, which is up 33% today at $2.6 billion, according to Coinmarketcap.
CoinGecko estimates 24-hour trading volume as substantially higher for meme coins, at $3.1 billion.
Rising prices on the back of strong trading volumes is indicative of a firm foundation for sustained price appreciation.
Where to look for the meme coins with the best prospects?
So where to look for the 10x opportunities at what could be an inflection point for the meme coin sector, while taking into account the still uncertain direction of the wider crypto market?
It probably makes sense to hold a large cap meme coin, in which case Shiba Inu stands out. For sure Dogecoin is the market leader but it is a stretch to expect musings from Elon Musk to propel the 10x gains over the near term.
Shiba Inu, on the other hand, offers a superior risk-reward ratio because of its efforts on the all-important striving for utility that we have already identified.
On that, Shiba Eternity is the first game to use the Shiba token. It is a free-to-play card game that also incorporates play-to-earn game mechanics, the latter being where the Shiba token finds its utility.
However, since its launch in the last quarter of 2022, no new games have been launched.
The protocol also now has a Layer 2 called Shibarium which will enhance the possibilities of the network as a whole.
For now we can say that Shiba Inu has shown its intent, which is better than Dogecoin, where there has been a lot of talk about product development and use cases, but little real progress, other than as a putative means of exchange.
In that respect, the hopes for Doge as the ‘token of choice’ on Twitter were dashed by Musk, and there is no sign of the billionaire chasing his tune on that.
Tamadoge – a new breed of meme coins with P2E utility and a Web3 breakthrough
But it is among the mid caps that the best opportunities lie, and there it is with the newer coins.
Tamadoge ticks all the boxes. It is a meme coin that is loaded with utility and with a roadmap that pitches to the mass market in a way that no other meme coin does.
And it does this by hitching a ride in the slipstream of doge brand power. Only a few months old and the TAMA token has established itself as a top 10 meme coin.
More than that though, Tamadoge is proving its critics wrong by continuing to deliver on its roadmap in impressive fashion.
For insatnce, this past week doubters were taken aback when Jon Bishop, formerly of eBay, PayPal, Coda and major children's games publisher Outright, joined Tamadoge as its CEO.
This is a big deal. Bishop was head of mobile at Outright, the owner of the Peppa Pig and Bratz brands.
The new CEO's experience in crypto includes his time as marketing director at top exchange Huobi Global.
Super Doge launch to be followed a second arcade dropping this week
Two weeks ago Tamadoge launched its first arcade game – Super Doge – and there are four more to come, the second of which, thought to be Rocket Doge or To The Moon, launches this week.
The arcade games are Super Mario-type games that will appeal to casual gamers. And unlike legacy games, these games are all play to earn, so players are rewarded with TAMA tokens for their skills.
As good as they are, however, the arcade games are not the main event in the drive of Tamadoge to become the No.1 name in Web3 gaming.
Tamadoge is taking meme coins to the metaverse – or should that be the Tamaverse – when it launches its augmented reality-powered mobile app in the Q3 2023.
In the flagship game, players nurture, breed and battle with their Tamadoge pet in a setting that takes the fun, skill-based gameplay of the arcade games to the next level.
Laying down the gauntlet to Web3 gaming giant Animoca Brands
The promise of play-to-earn gaming has been hampered by products that lack engagement and instead depend on tedious activities lacking in skill.
Not surprisingly, therefore, some of the biggest games in the space struggle to gain serious traction. The Sandbox, backed by Yat Siu's Animoca, only has 30,000 daily active users, according to a recent Financial Times report.
Insiders at Tamadoge say its first arcade game is on track to surpass The Sandbox in weeks, even though, for now, the game is only playable on desktop.
To get started with the arcade games, users can buy one of the three categories of NFT pets – common, rare and ultra rare.
Data shared with Cryptonews showed that in the two weeks of the initial beta testing of its games, 3,583 unique plays – although that's not exactly the same as unique users, that equates to more than 10% of the active user base of The Sandbox, achieved with zilch marketing.
TAMA price is the top meme coin performer in the past 24 hours, up 10% at $0.022
On the technical analysis side, Tamadoge is showing great promise after an inspired launch, which saw the price go parabolic, only to succumb to the travails of the Crypto Winter.
But if you think the cream always rises to the top, and that this is how things will play out in crypto too, then the current TAMA price, which is 88.6% down from its all-time high of $0.19, is an excellent level to start dollar-cost averaging in.
TAMA is today sitting above $0.021, threatening to flip resistance to support at $0.022. Indeed. on a 24-hour price view, it is the best-performing meme coin among the top flight of the sector.
There's every reason to believe that TAMA can rescale the heights to surpass its ATH.
Reclaiming its ATH would amount to an 800% gain for the token on the current value.
TAMA trades on a dozen or so crypto exchanges – you can buy TAMA on top crypto exchange OKX.