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The meme coin frenzy is taking over the crypto market again!

Wed 22 May 2024 ▪ 3 min of reading ▪ by Fenelon L.
Getting informed Altcoins

Memecoins, which had dominated the crypto rally in March, seem to be making a comeback with the recent market enthusiasm, fueled by expectations of Ethereum Spot ETF approvals. These tokens, inspired by internet memes, have recorded stellar gains, even eclipsing major cryptos.

La folie ds memecoins sur le marche crypto

A Rush for Memecoins

While attention was focused on the potential approval of an Ethereum Spot ETF, investors rushed to memecoins in search of quick profits. Dogecoin (DOGE) and Shiba Inu (SHIB), the two flag bearers of this category, saw their trading volumes and market capitalizations soar dramatically.

However, the true star of the month is Pepecoin (PEPE), a newcomer that climbed to the 21st position among cryptos in terms of market capitalization. Inspired by a webcomic character, PEPE more than doubled its value since the beginning of March to reach a new all-time high. Riding this momentum, it even briefly surpassed DOGE and SHIB in trading volume over a 24-hour period.

This phenomenon also spread to the Solana ecosystem, where the token Floki (FLOKI) saw its value increase sixfold since January. Trading volumes and the number of active addresses exploded for these memecoins, indicating strong participation from both whales and retail investors.

Records in Sight?

This frenzy around tokens with no intrinsic value raises questions. Memecoins ride on hype and the mimetic behavior of investors, with the risk of sharp corrections. Their meteoric rise could also divert capital from more serious and fundamentally sound crypto projects.

Nevertheless, memecoins highlight the emotional and community dimension of cryptos. More than technology or use cases, it is word of mouth and internet jokes that drive their success. A logic that is hardly compatible with traditional fundamental analysis.

How far will the memecoin rally go? It’s difficult to predict with certainty, but investors would be wise to exercise caution. The history of cryptos is dotted with short-lived success stories and dramatic falls. While the meme cult certainly brings enthusiasm to the market, it is wise to be wary of the irrationality that accompanies it.

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Fenelon L. avatar
Fenelon L.

Passionné par le Bitcoin, j'aime explorer les méandres de la blockchain et des cryptos et je partage mes découvertes avec la communauté. Mon rêve est de vivre dans un monde où la vie privée et la liberté financière sont garanties pour tous, et je crois fermement que Bitcoin est l'outil qui peut rendre cela possible.


The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.