On the 29th of October, I published, “Why I Have Decided To Invest In A Memecoin”. This was my introductory post to BONK, a Memecoin built on Solana. Coincidentally, it was pretty much the only real memecoin on Solana at the time. However, since its meteoric rise, we have seen a handful of copycats trying to harness Solana’s contagious energy. As I mentioned in the abovementioned article, this was my primary motivation behind this investment decision.
Solana had just begun to rally significantly, and I noticed that BONK was displaying a very strong correlation to SOL. It was moving in conjunction with SOL, but in terms of percentage points, it was outperforming SOL rather significantly. And so, I adopted BONK as a type of leveraged Solana investment. When I published this altcoin pick, BONK was trading at a market cap of approximately $24 million.
Today, BONK reached the $800 million market cap mark, and it’s headed higher in the long term. It also smashed into the Top 100 and is currently ranked 80th according to market cap. I never expected such a strong move so quickly. However, in all fairness, memecoins are known to rocket in incredibly short periods. Given the success of BONK, I have sought out a similar dynamic for Avalanche.
If you haven’t noticed, AVAX is smoking hot at the moment and briefly entered the Top 10 yesterday. It has however retraced to 11th position, but could very well regain a Top 10 standing. The memecoin I have chosen to harness AVAX is HUSKY. In many ways, this memecoin mirrors BONK during its formative stages. The market cap is currently around the $24 million mark, which is pretty much where BONK was when I called it.
Fortunately, I was able to enter HUSKY below $20 million, and so am already up almost 30% at this stage. It is however up a lot more than BONK was regarding its all-time low. However, the current market cap valuation has a lot of room for growth, regardless of this fact. There is however one particular aspect that has piqued my attention. Currently, all trading of HUSKY is taking place on DEXs.
This means that if HUSKY gets listed on some CEXs such as Gate.io and MEXC, we could see a sudden explosive move. The launch of the HUSKY store is also somewhat of a future catalyst as well. Ultimately, increasing HUSKY exposure in the form of apparel and other goodies, including exclusive collector NFT apparel.
Altcoins, and especially, memecoins tend to follow narratives and predictive behavioral patterns. However, it’s never a guarantee. As I have mentioned before, that is precisely why I start small, and then wait for a move in the right direction. I then look to increase exposure during corrections from higher highs.
Choosing to throw the kitchen sink at something without it first performing can be incredibly foolish. It can also work out well. However, that’s simply gambling, and not how I choose to approach the market, especially, if I am already dealing with a risky or speculative asset.
Even as I am writing this article, HUSKY is experiencing a correction, so I will be watching closely to see how it fairs over the coming days. It’s important to note that yesterday, HUSKY rallied as much as 150%, and profit-taking is to be expected. There are a couple of factors that support further growth.
- Husky is the predominant Avalanche-based memecoin
- The market cap is incredibly low
- Early stages of the bull market
Just remember, memecoins are most likely the riskiest Crypto assets of all, so caution and due diligence is non-negotiable. These things can pump hard… they can also go to zero.
It’s also very likely that BONK investors will be looking for the next memecoin winner. Regarding the typical narratives that drive these coins, HUSKY appears to be well-positioned. Time will tell I guess, see you next time, and remember to practice good risk management!
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This article was first published on Sapphire Crypto.