Comparing Different Memecoins: Dogecoin, Shiba Inu, and More
X’s market intelligence platform, IntoTheBlock, has released an infographic analyzing various memecoins in the market. The infographic compares these assets based on two indicators: holders in profit and whale concentration.
The “holders in profit” metric calculates the percentage of investors currently sitting in a net profit by comparing the average buying price to the current spot value of the cryptocurrency. The higher the percentage, the more investors are in profit.
The “whale concentration” metric measures the percentage of the coin’s supply held by large whale entities, defined as addresses holding at least 1% of the asset’s supply.
Among the memecoins analyzed, Leash and Dogecoin have the healthiest whale concentration, with the whales holding around 42% and 44% of the respective coin’s supply. On the other hand, Shiba Inu, Dogelon Mars, and Floki have a high concentration of supply among large holders.
High whale concentration increases the risk of market manipulation and rug pulls. Therefore, it is preferable to invest in coins with a more distributed supply.
DOGE Price Update
Dogecoin’s price has been declining steadily and is currently trading around $0.06, reflecting a nearly 5% decrease in the past week.
Hot Take: The Importance of Distribution in Memecoins
When investing in memecoins, it is crucial to consider the distribution of holders and the concentration of supply. Coins with a higher percentage of investors in profit indicate a lower likelihood of a sudden selloff. Additionally, a more distributed supply reduces the risk of market manipulation by large holders.
Therefore, it is wise to choose memecoins like Leash and Dogecoin, which exhibit healthier distribution metrics. Avoiding coins with high whale concentration, such as Shiba Inu, Dogelon Mars, and Floki, can help mitigate the risk of rug pulls and other market manipulations.
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