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Memecoin Trading Driven by Short-Term Speculation, Analysis Finds

Author: Content Editor
The on-chain data reveals that short-term traders are the primary drivers of activity for most memecoins, with Dogecoin having the largest number of active traders at 110,000. DEGEN, a reward token for the Farcaster Degen channel, also has a significant number of short-term traders at around 23,000. Interestingly, DEGEN has the same number of active traders as Shiba Inu, despite Shiba Inu having a market cap ten times larger than DEGEN. These top three memecoins, DOGE, DEGEN, and SHIB, far surpass other memecoin projects in terms of short-term trader activity. It is evident that memecoin fans are primarily speculative investors who capitalize on short-term price swings for quick profits. This information can help traders make informed investment decisions and employ short-term strategies like scalping or intraday analysis to maximize profits.

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