Three types of meme coins are experiencing a sudden increase in value today as the trend of meme-focused cryptocurrencies gains more speed.

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Understanding Meme Stocks and Cryptocurrencies for Investment Decision-Making

Many investors are familiar with the large overlap between meme stocks and dog-themed meme cryptocurrencies that have become increasingly popular. Currently, all eyes are on meme stock GameStop, which experienced a notable surge in pre-market trading after a tweet from meme stock icon Keith Gill, also known as Roaring Kitty.

Some people who have invested in popular cryptocurrencies like Dogecoin, Floki Inu, and Bonk may have noticed that their values changed by 3.7%, 14.8%, and 9.7%, respectively, by 11:45 a.m. ET compared to the previous day’s closing values.

The popularity of Meme Rally is gaining momentum.

Keith Gill’s significant stake of $116 million in GameStop has captured the interest of numerous investors. This could indicate his belief in a potential increase in value over the next three weeks, as his call options expire on June 21.

Being on time is essential for meme traders, regardless of whether they are trading in the stock market or digital asset exchanges. Successfully predicting when capital will be invested in these assets is vital for profiting from their fluctuation. In the past, meme tokens have demonstrated a higher potential for growth compared to meme stocks during surges, resulting in a rising demand for tokens such as Dogecoin, Floki Inu, and Bonk.

Is the Rally Able to Be Maintained?

There are significant distinctions between the present meme rally and the ones observed in the latter part of 2020 and early 2021. Alterations in the rate of interest and the capacity for companies or cryptocurrency projects to offer shares or tokens during market upticks may affect the long-term viability of these surges.

Investors are cautious as meme assets experience uncertain price action, despite a significant amount of capital looking for better returns. These assets are expected to face volatility in the coming weeks.

Is investing $1,000 in Dogecoin currently a wise decision?

According to the Motley Fool Stock Advisor team, there are 10 top stock picks for investors to purchase, but Dogecoin is not one of them. It is advised to consider the potential profits from these suggested stocks instead of investing in Dogecoin.

Stock Advisor provides investors with a blueprint for success, offering guidance on portfolio building and regular updates from analysts. The service has outperformed the S&P 500 since 2002.

To gain greater knowledge on investing in meme coins and stocks, refer to this article originally penned by The Motley Fool.

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Chris MacDonald does not hold any positions in the mentioned stocks. The website Motley Fool also does not hold any positions in the mentioned stocks. The Motley Fool follows a policy of disclosure.