Will there ever be another Dogecoin or Shiba Inu?

Dogecoin (CRYPTO: DOGE) and Shiba Inu (CRYPTO: SHIB) live in the imagination of investors due to previous parabolic bullish trends that turned some holders into millionaires. Of course, these two MEME coins could also cause other investors to lose a significant amount of money. But that doesn't stop hopefuls from wondering if another coin, or even one of these two coins, could reach new heights again under the right conditions. With that in mind, let's explore what those conditions truly are and evaluate whether a particular coin can reach or even surpass them -- even if it is not a good long-term investment, like those two coins. Liquidity and speculative demand are very important here. The environment that creates large bullish trends in both Dogecoin and Shiba Inu can be described as a speculative frenzy. However, that's a roundabout way of saying that ultra-speculative and extremely risky investments in worthless memes simply do not happen on a large scale outside of such conditions. But what causes the extreme speculative phases that tend to drive up the prices of the riskiest assets? In short, liquidity refers to the amount of money circulating in the cryptocurrency market as well as in the traditional market. Liquidity related to meme money has several components. The factor that most investors will be most familiar with is simply the amount of money that potential speculators have in their pockets and in their investment accounts on average. When people are actively handed money, like during the economic stimulus policies of the pandemic era, it directly frees up more of their capital to allocate to investments. If they feel that their standard and less risky investments are sufficiently funded, it is natural for people to look beyond the risk curve towards smaller growth stocks and cryptocurrencies. With enough loosening, some may be willing to bet completely with the hope that (mistakes) are leveraging their disposable income into significantly larger amounts. Another important factor affecting liquidity is the cost of borrowing money, determined by the Federal Reserve's base interest rate. This cost is primarily borne by banks and institutional investors, but it also affects consumers' borrowing costs. When large capital holders can borrow at cheaper rates, their demand for risky assets increases, as the required rate of return on their investments to cover borrowing costs and generate profits becomes lower. Big players may never buy Dogecoin or Shiba Inu directly, but they will definitely invest in risky growth stocks again, driving the prices of those assets up and thus creating a wealth effect that makes smaller holders feel wealthier and therefore more confident to participate in riskier games themselves. Both Dogecoin and Shiba Inu have seen their prices soar recently during the pandemic, specifically at the end of 2021. People’s disposable income was supplemented by the government, and liquidity was extremely easy to obtain for consumers as well as financial institutions. In other words, the conditions were perfect for a bullish meme stock rally. Please take a look at this chart:

As you can see, despite not reaching an all-time high, all it takes to get Dogecoin surging recently is just a prediction that interest rates will continue to fall. And although no other meme coin has reached billions of dollars in peak value in the same way as Dogecoin or Shiba Inu, it is inevitable over a long enough period as long as there are additional phases of liquidity and personal income. During the same time, these two well-established coins will almost certainly see significant increases. There Are Better Investment Options Waiting to buy these meme coins until the environment is right for them or until one of their successors goes to the moon is not a good strategy. Both Dogecoin and Shiba Inu have significantly decreased after reaching their peaks, and there is no reason to believe that they will recover and become a good investment for those who bought them at their peaks, although technically it is possible. Because these bets or similar bets tend to thrive when you have a bit more cash, a much smarter move is to keep an eye on the liquidity situation and pay attention to your own tendencies. Restrain the urge to gamble when you have more money than usual, especially if your portfolio is performing well. A better choice here is to bolster safer investments rather than throw money away.

Finally, don't give in to the fear of missing out (FOMO) with Shiba Inu, Dogecoin, or any other meme coin that seems like it will continue to be bullish. The final party will also come to an end, and when you hear about these coins, the likelihood is very high that it is closer to the end than the beginning.