- US SEC pocketed a partial win in its lawsuit against Coinbase, ushering a correction in crypto prices on Thursday.
- Despite the broad pullback, prices of meme coins like Dogecoin, Shiba Inu and Solana-based BRETT, POPCAT and BODEN increased.
- Meme coin market capitalization is up 4.2% on the day as traders flee to assets considered more speculative.
Prices of meme coins increased on Thursday despite the broader market sell-off driven by Coinbase’s legal setback against the US Securities and Exchange Commission (SEC). Meme coins are considered more speculative compared with other cryptocurrencies, so typically crypto traders flee to these assets when volatility reduces the appeal for large market cap tokens.
Meme coin takers line up during market turmoil
Maartje Bus, Messari VP of Research, said at BUIDL Asia in Seoul that meme coins have the potential to become a new asset class. Bus’ thesis is a popular one in the crypto ecosystem as meme coins have become an important part of the crypto market.
Memecoins typically surge following momentum from larger assets and can signal market shifts early. By understanding these trends, one can create a systematic approach to memecoin trading.
— Messari (@MessariCrypto) March 27, 2024
✍️ by @Saypien_
Explore the latest Enterprise report ⬇️https://t.co/WNLQAzzeax pic.twitter.com/QhQ80hRCoc
Research analysts from Messari identified that meme coins typically surge following momentum from larger assets and can signal market shifts early. Speculative assets play a key role in crypto market cycles and traders’ expectations of gains. Sometimes, they have the potential to outperform market-cap-weighted smart contract platforms significantly.
The SEC’s partial victory against Coinbase, in which the Judge denied the latter’s motion to dismiss the regulator’s lawsuit, is one of the key drivers of the ongoing correction in large crypto market cap assets on Thursday.
However, large meme coins like Dogecoin (DOGE), Shiba Inu (SHIB) and Solana-based Brett (BRETT), Popcat (POPCAT) and Jeo Boden (BODEN) yielded between 4% and 25% gains on the day.
DOGE, SHIB, BRETT, POPCAT, BODEN prices rally
DOGE and SHIB added 12% and 6% to their prices on the day, respectively. The Shiba-Inu-themed meme coin, DOGE, noted a massive spike in its social dominance as well, as seen on Santiment.
 [16.49.50, 28 Mar, 2024]-638472260674406385.png)
Dogecoin Social Dominance.
An increase in this metric, which measures the mentions of DOGE on social media platforms, typically coincides with local tops or bottoms in Dogecoin’s price.
In the current context, DOGE price could close above its local top at $0.2147 on Thursday.
DOGE/USDT 1-day chart
BRETT, POPCAT and BODEN prices climbed 6%, 18% and 6%, respectively, in the past day.
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
Polygon joins forces with WSPN to expand stablecoin adoption
WSPN, a stablecoin infrastructure company based in Singapore, has teamed up with Polygon Labs to make its stablecoin, WUSD, more useful in payment and decentralized finance.
Coinbase envisages listing of more meme coins amid regulatory optimism
Donald Trump's expected return to the White House creates excitement in the cryptocurrency sector, especially at Coinbase, the largest US-based crypto exchange. The platform is optimistic that the new administration will focus on regulatory clarity, which could lead to more token listings, including popular meme coins.
Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B
As Bitcoin (BTC) gets closer to the $100,000 mark for the first time — it crossed $99,000 earlier Friday — capital is rotating into alternative cryptocurrencies, creating a buzz in the broader crypto market.
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: Rally expected to continue as BTC nears $100K
Bitcoin (BTC) reached a new all-time high of $99,419, just inches away from the $100K milestone and has rallied over 9% so far this week. This bullish momentum was supported by the rising Bitcoin spot Exchange Traded Funds (ETF), which accounted for over $2.8 billion inflow until Thursday. BlackRock and Grayscale’s recent launch of the Bitcoin ETF options also fueled the rally this week.
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.