The meme coin rally is showing no signs of stopping. Recently, Pepecoin (PEPE) took the lead with a staggering 79% gain on the week, followed closely by Dogecoin (DOGE), Shiba Inu (SHIB), and Floki Inu (FLOKI), all enjoying double-digit increases during the same period. This upward trend seems to be fueled by various factors, including hints of possible exchange listings and the launch of new blockchain initiatives.
One of the drivers behind PEPE’s spike could be the recent bullish action of Bitcoin (BTC) above $30,000, which might have pulled PEPE along for the ride. Furthermore, the US-based Gemini exchange dropped hints about potentially listing PEPE, which undeniably contributed to the coin’s price surge.
Meanwhile, Shiba Inu developers announced the launch of Shibacals, a protocol for tagging real-world assets as NFTs. The use of Near Field Communication (NFC) chips for digital authentication of physical items on the Shibarium blockchain is another exciting development for the SHIB community. The Shibarium blockchain is an Ethereum layer-2 solution employing SHIB, Bone (BONE), and Leash (LEASE) tokens for ecosystem development.
All these events and announcements have seemingly boosted positive sentiment around meme coins, as depicted by the Crypto Fear & Greed index. The last two days recorded an increase in bullish sentiment, reaching two-month highs of 65. The index measures the crypto market’s overall sentiment using signals such as Google trends, surveys, price action, and volume momentum. A high value indicates overbought conditions, while a low value may suggest a bearish trend.
The total market cap of meme coins witnessed a whopping 11% gain in the past day, outperforming the total market cap of all cryptocurrencies which saw a 4.2% increase. Consequently, the overall cryptocurrency market cap reached $1.22 trillion, effectively erasing the losses suffered in June following the US Securities and Exchange Commission’s lawsuits against Binance and Coinbase.
Despite the recent surge, critics argue that meme coins are highly speculative and lack inherent value when compared to technically more advanced cryptocurrencies. They further contend that the recent gains could be short-lived and may not reflect the real adoption or long-term success of these tokens. While the meme coin market continues to display impressive growth patterns, investors should be cautious and consider the risks associated with such volatile investments.
Source: Decrypt
