Last January, millions of influencer traders caused the price of meme tokens to skyrocket. GameStop, AMC and Blackberry are among the companies that supported its development. The interest in memes allowed them to make spectacular leaps while bringing in money for traders.
However, many observers believe that these peaks will soon subside. Retail traders are already looking for new horizons to replicate last year’s massive gains. This opinion is also that of Dan Raju, co-founder and managing director of Tradier.
The informed opinion of Dan Raju
For the record, Tradier is a fintech and software company. It alone powers a large portion of active retail trades in the market. So last year, Trader has handled nearly $46 billion in assets for 2 million traders worldwide.
Dan Raju is the figurehead of this company. Speaking on memes, he indicated that “the meme stock rallies will fade.” According to him, most active traders will gravitate towards the cryptocurrency market. This view is based on the fact that the factors that contributed to the development of memes are disappearing.
Additionally, retail traders have moved from simply trading stocks to more complex assets. They are more gifted and better informed of market mechanisms. This is why they will tackle cryptocurrency.
Facts that confirm these apprehensions
According to a report from Apex Fintech Solution published on Friday, meme stocks had already begun to lose their ascendancy towards the end of 2021. Several popular names are already slipping off the top stock rankings. However, during this time, the actions of metaverses have attracted the interest of younger investors.
We already have names like Meta, the parent company of Facebook, the metaverse platform Roblox and Nike taking good positions in the rankings. It’s quite surprising when you know that the metaverse is still imprecise. All we know is that it is a virtual world where people can interact as avatars and can play and buy using cryptocurrency.
Mr. Raju indicated that the Cryptocurrency transaction volumes are still low among private investors. In fact, most active traders make no more than three trades per month. However, all of this is about to change. In 2022, several regulations will be established and applied in the world of cryptocurrencies. Their arrival will legitimize this asset class and make them more attractive to traders.
Dan Raju believes that cryptocurrencies will see renewed interest in 2022 at the expense of stocks of meme assets. For this, good regulations will have to be put in place. It will allow cryptocurrencies to gain clarity and legitimacy.
Source: Insider Markets
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