According to Blockworks, the success of GOAT has sparked a new trend in the cryptocurrency market: AI memecoins. While it remains uncertain whether this trend will last, it has certainly caught the attention of those active in the crypto space. K33 analyst David Zimmerman highlighted that the true test for GOAT and its associated tokens will come after the first major selloff. As the market engages in price discovery, debates about the substance of this new narrative are intensifying on social media platforms like X.
Zimmerman and K33 emphasize that the longevity of AI memecoins is not the primary concern. Instead, they view these tokens as momentum-trade opportunities. Crypto often generates new narratives, which can generally be reduced to momentum or volatility. Zimmerman noted that GOAT has exhibited significant price movements backed by substantial trading volume, despite being a relatively small on-chain token.
When comparing AI memecoins to established tokens like DOGE and PEPE, Zimmerman pointed out that AI memecoins still have a long way to go. His advice is to ignore the surrounding noise. If the optimistic views on AI memecoins prove accurate, this could mark the beginning of a new period of opportunities similar to the DeFi Summer of 2020. However, if the trend does not sustain, investors may find themselves holding devalued AI memecoins.
The article also encourages readers to stay informed with top crypto insights and explore the intersection of crypto, macroeconomics, policy, and finance through various newsletters offered by Blockworks.
