Most new cryptocurrency offerings, in addition to meme coins, derive their value from momentum and levels of community support. Some cryptocurrencies lack real utility or clear practical applications, making them susceptible to price volatility. In these cases, the currency's valuation relies heavily on the expectations of investors and speculators, rather than its intrinsic value or actual usage.
This lack of utility can lead to sharp price fluctuations, as the value of the currency can rise quickly due to speculation, only to fall just as swiftly when the overall sentiment of investors changes. Therefore, investors should carefully research the utility and practical applications of any cryptocurrency before investing in it, ensuring that it provides a solution to a real problem or offers a value-added service.$PEPE