Meme coins are highly speculative and risky investments. Based on internet memes and cartoon images with no underlying function, meme coins remain the Wild West of the cryptocurrency universe. They’re also enjoying a huge rally this year. As Bitcoin (BTC-USD) hits record highs and Ethereum’s (ETH-USD) price trades above $4,000 for the first time in two years, meme coins are running hot right now.
In fact, many meme coins have enjoyed bigger gains than traditional cryptocurrencies in recent months. Some have seen their price triple year to date. Of course what goes up must come down, and in the case of meme coins they tend to come down quickly, deflating investors’ portfolios in the process. Here are three meme coins to sell in March before they crash and burn.
Bonk (BONK)
Like most meme coins, Bonk (BONK-USD) is volatile. However, the digital token, which is based on a dog-themed meme and has characteristics similar to altcoin Solana (SOL-USD) has been on a wild ride over the past year. Late in 2023, Bonk’s price rose 300% in only 30 days. It then quickly crashed and burned before recovering slightly at the start of this year. So far in 2024, BONK is up 90%.
Launched in 2022, Bonk serves no real purpose and it is difficult to determine the reasons for its rally as the trading of meme coins, many of which were started as a joke, is highly speculative. The listing of Bonk on several cryptocurrency exchanges such as Crypto.com appears to have been a catalyst for the digital token. That said, investors would be smart to avoid the volatility with Bonk and simply invest in Solana, which is up 40% this year.
Dogecoin (DOGE)
Still the king of the crypto memes, Dogecoin (DOGE-USD) has enjoyed a resurgence as the price of Bitcoin hits fresh all-time highs. Year-to-date, Dogecoin has increased 80% to now trade at 17 cents. In the last 12 months, its price has gained 135%. That’s better than most stocks and amazing considering DOGE was started simply as a joke and serves absolutely no purpose whatsoever.
DOGE seems to be rising now based solely on the broader rally in cryptocurrencies. There’s no news driving this meme coin’s price higher, and Dogecoin has not changed any over the past year. However, Dogecoin still remains extremely volatile and risky. And despite its big run over the last 12 months, this meme coin is currently trading 73% below the all-time high it reached in spring 2021.
Shiba Inu (SHIB)
A meme coin based on another meme coin, Shiba Inu (SHIB-USD) is a cousin of Dogecoin. The creators of Shiba Inu call this crypto a “mascot for Dogecoin.” While based on the Japanese dog breed from which it takes its name, Shiba Inu is a classic meme coin in that it serves zero purpose. That it is based on another meme coin makes SHIB highly speculative.
All that said, SHIB has enjoyed a monster rally this year, rising 200% since Jan. 2. That’s a bigger gain than either Bitcoin or Ethereum. Like the other names in this gallery, Shiba Inu is benefitting from the current rally in crypto. Beyond that, this token doesn’t really have anything going for it. The last big event for SHIB came when Elon Musk briefly changed the Twitter logo to the Shiba Inu image.
On the date of publication, Joel Baglole did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
