As a seasoned analyst with over two decades of experience in the financial markets, I have witnessed numerous trends come and go, but the current surge in memecoins is truly intriguing. The rapid rise of Doge, Shiba, Pepe, Cat in Dogs World, Mog Coin, Brett, and others is reminiscent of the Dotcom boom of the late 90s, where the promise of a new technology or concept was enough to fuel exponential growth.
Over the last seven days, the most popular meme-based cryptocurrencies by market value have experienced substantial growth. Specifically, Dogecoin (DOGE), Shiba Inu (SHIB), and Pepe (PEPE) have all increased by more than ten percent.
In a world dominated by dogs (symbolically speaking), the memecoin called Cat (MEW), built on the Solana platform, experienced the greatest surge, increasing by more than 47.5% over the last week and an additional 9.3% in the past 24 hours. Over the past 30 days, its value has soared by 112%. Mog Coin (MOG) came in a close second with weekly gains of 39.6%, while Brett (BRETT) trailed slightly behind, rising by 25% over the same period.
On October 18th, memecoins saw their rally persist. Specifically, Dogecoin (DOGE), Shiba Inu (SHIB), and Pepecoin (PEPE) experienced gains of 10.2%, 4%, and 2.8% respectively over the past day. Meanwhile, Dogwifhat (WIF) saw a significant surge, rising by 63%.
Let’s look at the factors driving memecoins up today.
Is the “memecoin supercycle” here?
Bitcoin’s (BTC) latest surge past $68,000 has sparked speculation among analysts that October could mark a significant period of growth, potentially setting the stage for the rise of the “MemeCoin boom.
According to memecoin analyst Murad Mahmudov’s perspective, a combination of factors may lead to favorable market conditions, potentially causing meme-focused cryptocurrencies to undergo explosive growth.
Mahmudov clarifies that memecoins are increasingly popular among investors because they focus more on community, feelings, and the potential for wealth, rather than the intricate technical aspects and functionalities found in other altcoins.
One of the factors that could trigger a memecoin supercycle is the continued growth in the price of Bitcoin. A recent report by BDC Consulting reveals that the memecoin market is “very sensitive” to movements in BTC price with a correction of 0.87.
Such a strong correction implies that as Bitcoin price continues to gain traction, it is highly likely that the prices of other cryptocurrencies will not only follow, but could even outperform BTC in the shorter term.
Expanding memecoin market cap
Over the last four weeks, the total value of meme tokens in the market has seen a significant increase of 48.6%, with an additional 4% rise over the past 24 hours. This growth now values meme tokens at approximately $57.4 billion, indicating a boosted sense of faith among investors towards this sector.
Over the past month, the daily trading volume for memecoins has significantly escalated. It jumped from a September 18th figure of $3.8 billion to reach a monthly peak of $9.1 billion on October 16th. However, it later decreased to its current level of $7.4 billion. This surge in trading volume suggests the heightened demand-side pressure that has been building up within the sector during this period.
Supporting this, data from Dune indicates that the volume of weekly transactions for memecoins across all blockchains, such as Ethereum, Solana, and Tron, has significantly increased by approximately 161.7% over the past month. This increase was observed when comparing the $110.5 million in transactions during the first week of September to the $289.2 million recorded for the week ending October 6.
The cumulative trading volume for all memecoins had crossed the $52 million mark to rest at $52.26 billion.
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2024-10-18 12:30