Is the Meme Coin Craze Here to Stay?
The surge in meme coins has sparked a debate – will this trend continue or is it just a bubble waiting to pop?
Newcomers Making Waves
Meme coins are back in the limelight, with the meme coin market cap increasing by over 36% in the last 30 days. This surge has left traditional altcoins and even Bitcoin in the dust, with the market cap standing at an impressive $63.5 billion as of June 3.
Of the top 100 cryptocurrencies by market cap, seven are meme coins. Dogecoin (DOGE), the largest meme coin, has seen a 22% gain, trading at $0.1614. Close behind is Shiba Inu (SHIB), up by 10% and trading at $0.00002598.
However, the real winners of this rally are Pepecoin (PEPE) and FLOKI. PEPE has shot up by over 100% in just 30 days, now trading at $0.0000153. FLOKI is not far behind, with a 64% increase, trading at $0.0002683.
The excitement doesn’t end there – a whale recently purchased 90 million DOGE, valued at $14.28 million, from Robinhood. Additionally, Whale Alert reported a massive movement of 499.42 million DOGE, worth around $81.10 million, between two unknown wallets.
So, what’s fueling this meme coin surge? Why are they outperforming other cryptocurrencies? Let’s delve into what’s driving this hype and where it might lead.
Newcomers Making Noise
As meme coins continue their rally, Solana-based meme coins are also experiencing a spectacular run. Over the past 90 days, Solana-based meme coin dogwifhat (WIF) has soared by over 134%, now trading at $3.39.
But that’s just the beginning. A newcomer, Book of Meme (BOME), has skyrocketed into the top 100 cryptos, with a remarkable gain of over 1,385% in the last 90 days, currently trading at $0.01354.
The surge in Solana-based meme coins is not happening in isolation. Celebrity tokens have recently made their debut on Solana, adding to the buzz around meme coins.
Just last week, Caitlyn Jenner launched a coin called JENNER via the SOL-based meme coin portal pump.fun. However, the launch was marred by controversy. Developers dumped the token soon after trading began, causing its price to crash and leading to accusations against Jenner of orchestrating a rug pull.
Reports later revealed that a scammer named Sahil was behind the incident, taking advantage of Jenner’s lack of knowledge about the web3 space to profit from the celebrity’s meme coin.
Less than 48 hours later, Australian rapper and OnlyFans model Iggy Azalea launched a token under the ticker MOTHER. Azalea’s celebrity crypto surged over 30,000%, reaching a $30 million market cap. However, Sahil also launched an IGGY coin, attempting to capitalize on Azalea’s hype and making off with millions in another pump-and-dump scheme.
In response, Azalea distanced herself from Sahil’s IGGY coin, promoting her own token and expressing excitement for the decentralized meme ecosystem during an online discussion.
Why Meme Coins Are Rallying
Several factors are driving the meme coin rally, and it’s not just about fun and memes. One key reason is the positive news from regulatory bodies.
The Securities and Exchange Commission (SEC) recently approved eight spot Ether exchange-traded funds (ETFs) from major firms. While Ether itself has seen a modest bump, this regulatory approval has sparked optimism across the crypto market, especially among high-reward meme coins.
Pro-crypto news tends to generate excitement and money flow into the ecosystem, benefiting smaller projects like meme coins with relatively small market caps that often witness wild swings during bullish periods.
The recent hype around Solana has positioned it as the go-to chain for ‘speculative fun,’ attracting traders willing to take a chance on meme coins.
It’s essential to note that the spot ETH ETF approvals are still in the early stages, with final S-1 filings pending approval. Once green-lit, we could see increased market activity and potential price movements.
Community and Experts Weigh In: Will the Meme Coin Rally Continue?
As the meme coin rally continues, opinions are divided on its longevity. Some believe it’s a bubble waiting to burst, while others think it’s here to stay.
On Twitter, a crypto analyst highlighted the importance of current price levels for major meme coins like FLOKI and DOGE, suggesting that these coins could determine the next move based on their uptrend support levels.
Another user expressed concerns about capital flowing into meme coins and celebrity tokens, diverting investment from potentially good projects. However, he views this as a temporary phase, expecting capital to rotate back into quality projects after corrections.
Eddy Lazzarin from Andreessen Horowitz compared the meme coin ecosystem to a risky casino, warning about the negative light it casts on the crypto industry. Vitalik Buterin criticized meme coins, especially those with dubious themes or associations, expressing skepticism about their long-term viability.
Binance reported an explosion in new tokens, especially on the Solana network, mainly meme coins. While meme coins are enjoying a remarkable rally, their sustainability remains uncertain, cautioning investors to tread carefully and be aware of market trends and risks involved. Never invest more than you can afford to lose.