Definition ∞ Meme coin volatility refers to the extreme and often unpredictable price swings experienced by cryptocurrencies primarily created as internet jokes or social media phenomena. These assets typically lack fundamental utility or a robust development roadmap. Their value is largely driven by speculative trading, social media sentiment, and community hype. Such assets exhibit significantly higher price fluctuations compared to more established cryptocurrencies.
Context ∞ Meme coin volatility is a frequent subject in crypto news, often highlighting both rapid wealth creation and substantial losses for retail investors. Discussions often caution against the speculative nature of these assets and the inherent risks associated with them. The phenomenon raises questions about market efficiency, investor protection, and the impact of social media on digital asset valuations, remaining a notable aspect of the broader crypto market.
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