On-chain data reveals that most memecoin activity is fueled by short-term traders. Dogecoin (DOGE) has the largest number of active short-term traders, boasting 110,000 traders on its network.
DEGEN, a reward token for the Farcaster Degen channel, follows with about 23,000 short-term traders. Interestingly, despite Shiba Inu (SHIB) having a market cap ten times larger than DEGEN, it also shares the same number of short-term active traders—around 23,000.
Key Memecoins See High Short-Term Trading
Dogecoin, DEGEN, and Shiba Inu dominate the memecoin space in terms of short-term trader activity, far outpacing other projects. Mid-sized tokens, like Coq Inu, Turbo, Mog Coin, and MAGA, each have around 4,000 active traders.
Memecoins Attract Speculative Traders
This data confirms the widely held belief that memecoin traders are mainly speculative, focusing on short-term gains. Many memecoin investors capitalize on price swings during bullish periods, which leads to increased volatility in the market.
Maximizing Profits with Short-Term Strategies
For new investors, understanding this trend can help shape trading strategies. Memecoin traders often use tactics like scalping or intraday trading to benefit from short-term price fluctuations. These methods allow traders to make frequent profits over short periods rather than holding assets long-term and waiting for extended bull runs.
