@egberthume
Meme tokens often experience extreme volatility, with sharp rallies and crashes driven by community hype. When their market cap grows significantly, sudden corrections can trigger broader risk-off sentiment, influencing mainstream coins like BTC and ETH. Additionally, liquidity concentrated in meme markets can reduce capital available for blue-chip projects. However, meme tokens also attract new retail participants, indirectly benefiting mainstream adoption. The net effect depends on market phase: in bullish cycles, meme rallies may complement mainstream strength, but in downturns, sharp meme collapses can amplify broader volatility.
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