- Meme coins are on fire, posting double-digit gains as the market continues on its bullish streak.
- Dogecoin, Shiba Inu, Pepe, and Dogwifhat, the meme coin top-four are on fire, leading sector tokens north.
- Traders are calling top on meme coin season when BTC has not even crossed its $69,000 peak yet.
Meme coins are on a tear, recording striking gains as the sector continues to outperform the market. It comes amid an ongoing bull market, with some analysts saying this could just be the beginning. Bitwise CIO Matt Hougan said he expects a new wave of capital inflow into the BTC exchange-traded funds (ETF) market, effectively driving Bitcoin price further north.
Meme coins are on fire
While the market is just warming up for an expected bull market, meme coins are exploding with remarkable gains. Dogecoin (DOGE), Shiba Inu (SHIB), Pepe (PEPE), and Dogwifhat (WIF) lead the pack with 18%, 56%, 52%, and 35%. Bonk Inu (BONK) is also in the competition with 10% gains as Floki Inu (FLOKI) records the highest gains above 70%.
DOGE/USDT 1-day chart, SHIB/USDT 1-day chart, PEPE/USDT 1-day chart
An October report by WazirX detailed three reasons why meme coins tend to rally with Bitcoin.
- Meme coins are very popular among retail investors who are drawn to the sector tokens’ fun and exciting nature. When the market is broadly bullish, these types of investors tends to be drawn to meme coins leading to growing demand.
- This sector’s tokens have fair market capitalizations, which means even a relatively small capital inflow can have a significant impact on the price of a meme coin. “A sudden surge in investment can trigger significant price surges.”
- Meme coins make for communities that are defined by high engagement. Increased activity, inspires enthusiasm and therefore demand.
With these, meme coins tend to benefit from the bullish trend seen with Bitcoin price. Fortune indicates that when meme coins pump alongside BTC, it is often an indication that the “crypto bubble is back.”
Investor call top on memecoin season as Bitcoin price eyes $69,000
As it happens, investor interest in meme coins continues to grow, seen as sector tokens are pumping hard. One trader and analyst, @Rewkand on X says, “People are really calling top on memecoin season when BTC hasn't even crossed ATH yet.”
With meme coins proving to be a global shelling point for speculative liquidity, their accessibility remains one of the sector’s greatest strengths, which explains community engagement. During the last cycle, the total market capitalization of meme coins was around $100 billion. Despite BTC not having reclaimed its $69,000 peak, and the halving event expected to kickstart the next bull market standing around 48 days out, meme coin market capitalization is now upwards of $40.77 billion.
Cognizant that the meme coin markets usually record highs in market capitalization each cycle, the sector could perform even better once the bull market officially catches steam. This is because, as Hougan put it, retail traders and hedge funds are already at play, but institutional players still have to bring their own wave of capital.
The next wave of institutional buying could push the Bitcoin price substantially higher.
Nevertheless, the meme coin market is also very volatile, which explains the frequent undervaluation despite strong communities for individual projects in the sector. Cautious optimism is therefore key as DOGE, SHIB, PEPE and WIF walk the thin line between prosperity and uncertainty.
Also Read: Robinhood to list Dogwifhat as WIF tags $1: Is Coinbase next?
Bitcoin, altcoins, stablecoins FAQs
What is Bitcoin?
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
What are altcoins?
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
What are stablecoins?
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
What is Bitcoin Dominance?
Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Is Altcoin Season here as Bitcoin reaches a new all-time high?
Bitcoin reaches a new all-time high of $98,384 on Thursday, with altcoins following the suit. Reports highlight that the recent surge in altcoins was fueled by the victory of crypto-friendly candidate Donal Trump in the US presidential election.
Shanghai court confirms legal recognition of crypto ownership
A Shanghai court has confirmed that owning digital assets, including Bitcoin, is legal under Chinese law. Judge Sun Jie of the Shanghai Songjiang People’s Court shared this opinion through the WeChat account of the Shanghai High People’s Court.
BTC hits an all-time high above $97,850, inches away from the $100K mark
Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: New high of $100K or correction to $78K?
Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.