Bank of America: Crypto with Utility May Oust Meme Tokens in 2023
Bank of America (Bank of America) predicts that as the cryptocurrency rebound gains momentum, the Meme Coin rally may gradually weaken. Are we witnessing a shift in the crypto landscape? The focus seems to be moving towards projects with real-world applications.
The market is presenting two distinct paths: the volatile and often unpredictable journey of meme coins like Dogwifhat, and the more consistent growth potential of utility projects like Lightchain AI. Meme coins have been all over the news, fueled by hype and community sentiment.
The Rise of Utility Tokens: Security and Steady Returns
Prioritizing utility tokens over meme coins can provide more security and potential for steady returns. Functional tokens, especially those powering AI solutions like Ozak AI, provide tangible practical value. The question is, can they truly overshadow the allure of meme coins?
A recent report stated, “We expect 2025 to be the year of token price divergence,” emphasizing that “tokens that provide utility and a call on cash flows [will outperform] meme and governance tokens.” This highlights a growing expectation that investors will increasingly favor projects offering real-world utility and tangible benefits.
Meme Coins Evolving: Adding Utility to Survive
Some meme coins with strong communities are attempting to create utility for their token to sustain interest and maintain momentum. This involves incorporating features or applications that give the token a purpose beyond simply being a collectible. However, many meme coins lack such community support and face the risk of a rug pull.
Navigating the Crypto Landscape: Due Diligence is Key
As always, users are advised to do their own thorough research before investing in any cryptocurrency, whether it's a meme coin or a utility token. Understanding the project's fundamentals, its community, and its potential applications is crucial for making informed investment decisions. Will 2023 be the year utility tokens truly take center stage, or will meme coins continue to surprise us? Only time will tell.