grey kitten on floor

Over the course of this year, the market cap for cryptocurrency has swelled to over $3trn. This is a sizeable increase in funds being stored in a multitude of different coins. As we’re reviewed extensively over the past few months, the coins have different attributes. There is even a place for meme coins, with little intrinsic value bar being a bit of fun. With dogs being in vogue for much of 2021, is the incoming wave of cat coins the next big thing?

Different types of coins

Even as I write, the stupidity of what is coming out is noted. But stick with me on this until the end. Some of our favourite coins in the team are Polkadot and Ripple. Polkadot (and others like Ethereum) have some incredible potential. The base architecture within the network enables different networks to communicate, creating blockchains in the process. The commercial value of these projects is clear.

At the other rend of the spectrum is meme coins. These coins have little value bar being a decentralized means of exchange. Yet dog coins such as Dogecoin and Shiba (along with a variety of copy cat coins) have flooded the market. Not only have these dog coins been pitched hard, the market cap has also risen.

Take Shiba for example. The coin has a market cap of $26bn, ranking it 11 in the crypto space. Even after retracing lower in recent days to currently trade around $0.00005, the return in just a few months would have been spectacular for early investors. Only three months ago, the price was trading at $0.000008. At the start of 2021, it was trading at less than $0.0000000001.

Cat altcoin season?

The next potential wave in this sector is appearing to be cat related meme coins. The bulk are using the name of Elon Musk’s cat, Schrodinger. Popular coins are DINGER, KITTY DINGER and KITTY SHIBA. Most of these have been launched within the past month. 

As crazy as it sounds, if we use the past performance of the dog related coins to judge the future, then the cat coins could offer good returns for early investors.

Most of these coins have no more value than the dog inspired ones, in terms of use or ability. This is simply a speculative play based on the growth of the crypto space and also the momentum that could be driven as investors turn to look at what could be the next big thing in this space.

In terms of risk, it’s high. These coins are in an early stage, meaning that the market cap is low and the rug could be pulled at any moment. Scam coins are also likely out there. Even if the coins are legitimate, it’s likely that only a couple are really going to take off and gain traction.

Therefore, to take exposure we’d look at splitting a small amount of funds into a mix of cat coins. 

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