A recent survey from the crypto exchange Kraken, which explored the opinions of 800 U.S.-based crypto holders, revealed that 85% of the respondents had invested in memecoins. 76% of the respondents also believed that the risk of memecoin investments was worth the potential rewards. Kraken added that women had a higher affinity to crypto investments than men, with 86% of the female crypto holders investing in memecoins compared to 84% of the male respondents. The survey also reportedly outlined that fear of missing out (FOMO) was among the top reasons behind investor interest in the volatile asset class. Other top reasons investors pointed out included the fun nature of the memecoins and recommendations from friends and family. 20% of the respondents mentioned that the goals behind their memecoin investment were short-term returns, while 23% invested in coins to diversify their portfolio. Kraken’s survey comes a few months after the exchange conducted another research on trends expected from crypto investors in 2025. The December report revealed that 73% of the respondents in the survey planned to reinvest in crypto this year. A significant percentage of the respondents further believed that crypto was a viable investment in 2025, with 52% of investors considering it as a long-term investment. 43% of the respondents also considered crypto to be a better economic security than traditional finance assets. 55% further believed in the worth of digital assets in real-world utility. 60% of the respondents still believed that bad actors are the primary users of crypto, while 29% were unsure of where the crypto sector is headed. Memecoins might outperform other cryptocurrencies https://t.co/sVDdBnTmgo — kAI (@Kaiwen0x) October 5, 2024 The survey outlined that 42% of the respondents believed that memecoins would outperform other cryptocurrencies this year. The sentiment among U.S. crypto holders was in line with a recent report by the crypto analyst on X, Kai, better known under his pseudonym on the social media platform Kaiwen0x. Kai also speculated that the fun-themed coins would outperform the rest of the crypto market in 2025. The analyst suggested the growing interest in memecoins as a viable investment option for crypto holders in the country. Kai further termed the expected surge as the memecoin cycle, suggesting that the coins will lead the bull run expected this year. In his opinion, memecoins are the only other currencies besides stablecoins and Bitcoin that had a “clear product-market fit” to drive the bull run. Kai first explained that memecoins deviate from traditional crypto projects, which focused their attention on token development and product development. The analyst added that the fun-themed token projects focused solely on the token itself, adding that the projects combined capital formation and community building as key features of the tokens. Kai also confirmed that the tokens derived their value from the attention communities offered, creating a market based on global speculation. The analyst further highlighted the coins’ performance last year, when 16 out of the 20 coins that outperformed Bitcoin among the top 300 cryptocurrencies were memecoins. A DWF Labs research report supported Kai’s statement, mentioning that memecoins outperformed every digital asset class. DWF Labs pointed out that memecoins experienced a 500% surge last year, gaining about $100 billion in market value by the end of the year compared to January. Trump administration fuels memecoin surge President Donald Trump’s pro-crypto administration, a promise to loosen crypto regulations, and the Trump family’s launch of memecoins have fueled the token class. The U.S. president launched the Official TRUMP memecoin, and the First Lady released the MELANIA memecoin a few days before Trump’s inauguration. The launches triggered a rally in the memecoin market, further fueled by several memecoin-based ETF applications, including BONK and Dogecoin. A January NFT Evening survey further revealed that the TRUMP and MELANIA tokens attracted first-time crypto and memecoin buyers. The survey indicated that about 1 out of 7 Americans bought the TRUMP token, highlighting that 42% of the buyers bought the token as their first crypto investment. The former CFTC chair Christopher Giancarlo still believes the rise in memecoins had a negative effect on crypto markets. Giancarlo’s sentiments aligned with the NFT Evening survey, which also highlighted that 70% of U.S. crypto investors thought of the memecoin craze as a negative addition to the crypto market. The former CFTC chair mentioned that the U.S. SEC crackdown on altcoins paved the way for the surge in memecoin interest. Cryptopolitan Academy: FREE Web3 Resume Cheat Sheet - Download Now
