The gambling mentality is becoming the dominant mindset among crypto traders amid a surge in memecoin discussions, according to analytics firm Santiment.
In a new report, Santiment says that memecoin mindshare is making a comeback despite the recent high-profile collapses of several assets in the sector.
Santiment says that the rise in memecoin-centered discussions on social media suggests an increase in speculation and short-term investing mentality.
“Memecoins, in particular, are once again gaining considerable attention. Online discussions about these high-risk tokens have proliferated as traders embrace a ‘gamble’ mindset, rather than a calculated investment approach.
Notice how social volume has been creeping up for top market cap meme coins, and declining for layer-1s and layer-2s. This is a telltale sign that traders are increasingly investing based solely on speculation and short-term gains.”
Santiment says that currently, the rise in online discussions about altcoins, altseasons and bull markets suggests that the crypto market will likely witness a correction.
“Historically, the best times to invest in altcoins have been when crowd interest is between low and practically nonexistent. But at this current stage, with buzzwords like ‘altcoin,’ ‘altseason’ and ‘bull cycle’ trending, caution is advised, with retailers looking for any opportunity to buy minor dips. Markets move opposite to crowd expectations, so when the crowd’s excitement peaks, it often signals that prices are nearing exhaustion.”
Read the full Santiment report here.
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