Popcat (POPCAT 5.75%) looks like it could have what it takes to be the next massively successful meme coin like Shiba Inu (SHIB 2.30%) or Dogecoin. Its market cap is already above $1.4 billion after just 10 months since its launch, and it's up roughly 155% during the past 30 days. The odds of this run continuing are higher than many investors may suspect, given its total lack of traditional fundamental investing metrics to justify its value.

But don't take that to mean there's no investing thesis for this cat coin. In fact, its has a number of factors in its favor. While that doesn't change the reality that it's a highly risky pick, it does bear further investigation.

This meme coin is the cat's meow

The Popcat meme itself is a little different from the meme coins of the past. There's a website where users can click on an image of a cute white cat named Oatmeal, thereby briefly causing its mouth to open as wide as a basketball, while simultaneously playing a quiet bubble-popping sound. For reasons that are unclear, people worldwide have made the cat pop in this fashion more than 648 billion times so far since the site's launch in late 2020, with hundreds of new pops occurring each second.

So, it's safe to say that the meme underlying the coin is very salient for many of those exposed to it. That's especially true for users in Asian countries like China and Thailand, both of which are leaders in terms of the number of pops attributable to their countries.

Right now, the coin has around 84,000 holders, and that number is growing steadily each week by about 3%.

The macro situation looks very favorable here

The relentless changes in the flows of money in the global financial system support the idea that Popcat could go on a stunning run.

Importantly, just as the Federal Reserve is currently doing in the U.S., the central bank of China is cutting the interest rate that determines the economywide cost of borrowing money. It's also taking supportive fiscal stimulus measures to prop up its stock market and financial system. As the cost of borrowing drops, financial companies and investment banks in both the U.S. and China will, in turn, have a lower bar to clear in terms of the return they need on their investments.

That will incentivize riskier investments, including cryptocurrencies, and it could also filter through to the wider economy such that people end up with more cash on hand -- cash that could also be invested in crypto. Hedge funds and venture capital (VC) groups are already starting to invest in meme coins as a result.

There's one more aspect of the bull thesis for Popcat, and, while it might seem silly, it's something worth thinking about seriously.

The last two major meme coins to run up to massive valuations, Dogecoin and Shiba Inu, are memes that feature dogs.

But, in the U.S., there are an estimated 70 million dogs, whereas there are 74 million cats. In China, the country with the world's second-largest cat population, the gap between the two is wider, with 27 million dogs, and 53 million cats. The vast majority of all those animals have owners, at least some of whom are potential investors in meme coins that tickle their fancy.

Yet there hasn't been a mega-cap cat meme coin so far. On a long enough timeline, that's very likely to change. When it does, there could be an even larger pool of willing buyers than there were with the previous meme coin champions, assuming that owners will prefer to buy a coin that matches the pet they own.

Thus, Popcat is a contender for being the first cat meme coin superstar, and if its rapid growth rate continues, it will soon earn its crown.

Stay grounded with this one

As favorable as the setup for Popcat looks right now, it's critical to understand that it's a highly risky investment that is not the right choice for many investors. In fact, it isn't even accessible yet for most investors. It isn't listed for purchasing on popular investing platforms, except on some (but not all) cryptocurrency exchanges. That's in the process of changing, but it could still be a few months before it's more widely available.

If you think you might need your investment dollars back within the next three to five years, don't think about buying Popcat.

If you will have trouble sleeping at night when the coin fluctuates 20%, 30%, or even 40% or more over the course of a month, buying this coin will keep you red-eyed and tired.

If you haven't built up a diversified portfolio with a good mixture of safer and more growth-oriented traditional investments, not to mention maintaining standard personal finance necessities like an emergency fund, do not buy this coin until those bases are covered. In a worst-case scenario, it could go to zero -- it's a financial frivolity, not a workhorse investment.

But, if you're looking to make a relatively small investment with the possibility of tremendous upside with the small segment of your portfolio dedicated to chasing the riskiest plays, Popcat is a good option. If it does indeed go to the moon and become the next Dogecoin or Shiba Inu, the risk will be well worth the reward.