Will the meme coin surge persist? There is a split of opinions on whether this phenomenon is here to stay or if it’s just a bubble waiting to pop.
**Table of Contents**
**Emerging Players Creating a Stir**
**Reasons Behind the Meme Coin Rally**
**Community and Experts Discuss: Will the Meme Coin Rally Continue?**
Meme coins have once again taken the spotlight. Over the last 30 days, the meme coin market cap has jumped by over 36%, leaving many traditional altcoins and even Bitcoin (BTC) in the dust. As of June 3, the market cap stands at an impressive $63.5 billion.
Seven of the top 100 cryptocurrencies by market cap are meme coins. Dogecoin (DOGE), the largest meme coin by market cap, has seen a 22% increase, trading at $0.1614. Following closely is Shiba Inu (SHIB), with a 10% uptick and trading at $0.00002598.
However, the real stars of this rally are Pepecoin (PEPE) and FLOKI (FLOKI). PEPE has surged by over 100% in just 30 days, now trading at $0.0000153. FLOKI is not far behind, with a 64% rise, trading at $0.0002683.
The excitement doesn’t end there. A whale recently acquired 90 million DOGE, valued at $14.28 million, from Robinhood.
Furthermore, Whale Alert, an on-chain transaction tracking platform, reported a massive transfer of 499.42 million DOGE, worth about $81.10 million, between two unidentified wallets.
So, what is fueling this surge in meme coins? Why are they outperforming many other cryptocurrencies? Let’s delve into what is driving this hype and where it might lead.
**Emerging Players Creating a Stir**
As meme coins continue to rally, Solana (SOL)-based meme coins are having their own impressive run. Over the past 90 days, Solana-based meme coin dogwifhat (WIF) has skyrocketed by over 134%, now trading at $3.39.
But that’s just the beginning. A newcomer, Book of Meme (BOME), has stormed into the top 100 cryptos, with a staggering 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 introduced a coin called JENNER via the SOL-based meme coin portal pump.fun. However, the launch was marred by controversy.
Shortly after trading commenced, developers dumped the token, causing its price to plummet and leading to accusations against Jenner of orchestrating a rug pull.
Reports later revealed that a notorious scammer named Sahil was behind the incident. Sahil allegedly took advantage of Jenner’s lack of knowledge about the web3 space, using his intermediary role 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. According to DEX Screener, Azalea’s celebrity crypto surged over 30,000%, reaching a $30 million market cap.
But the drama didn’t stop there. Sahil also introduced an IGGY coin, trying to capitalize on Azalea’s buzz and making off with millions in another pump-and-dump scheme.
In response, Azalea distanced herself from Sahil’s IGGY coin. She took to X Spaces to promote her own token and expressed her excitement for the decentralized meme ecosystem.
**Reasons Behind the Meme Coin Rally**
Several factors are propelling the meme coin rally, and it’s not just about fun and memes. One significant reason is the positive news from regulatory bodies.
The Securities and Exchange Commission (SEC) recently greenlit eight spot Ether exchange-traded funds (ETFs) from major firms. While Ether itself has seen only a modest bump, this regulatory approval has sparked optimism across the crypto market, especially among the riskier, high-reward meme coins.
Historically, pro-crypto news tends to generate excitement and money flow into the ecosystem, which trickles down to smaller projects. Meme coins, with their relatively small market caps, often witness wild swings during these bullish periods.
However, it’s not just about one-off events like the ETF approvals. The recent hype around Solana has carved out a niche for itself as the go-to chain for ‘speculative fun,’ attracting traders willing to gamble on meme coins.
It’s important to note that the spot ETH ETF approvals are still in the early stages. The SEC has approved the initial 19b-4 forms, allowing securities to be listed on exchanges.
However, the final S-1 filings, which outline the structure and management of the ETFs, are yet to be approved. Once these are given the green light, we could witness even more market activity and potential price movements.
**Community and Experts Discuss: Will the Meme Coin Rally Continue?**
As the meme coin rally continues to capture attention, opinions are divided on whether this trend will persist or if it’s just a bubble waiting to burst.
On Twitter, a crypto analyst discussed the significance of current price levels for major meme coins like FLOKI and DOGE. According to him, these coins are at their uptrend support, a crucial level that could determine the next move.
If they bounce off this support, we might witness a broader rally in meme coins. However, if they lose this support, a deeper correction could follow, impacting the entire meme coin market.
Another user raised concerns about the capital flowing into meme coins and celebrity tokens. He highlighted that many good projects are suffering as investors pour money into these high-risk assets.
However, he views this as a temporary phase, predicting that once the inevitable corrections (or “rugs”) occur, capital will rotate back into quality projects.
A prominent figure from Andreessen Horowitz (a16z), Eddy Lazzarin, also provided a critical viewpoint. He likened the meme coin ecosystem to a risky casino, suggesting that it paints the crypto industry in a negative light.
“At best, it looks like a risky casino. Or a series of false promises masking a casino,” Lazzarin stated, cautioning that this perception could hinder adoption, regulation, and innovation in the industry.
Ethereum co-founder Vitalik Buterin also weighed in, criticizing the recent surge of meme coins, especially those with questionable themes or associations.
Buterin expressed his lack of enthusiasm for coins that offer excitement initially but lead to disappointment and losses later.
Meanwhile, Binance reported a surge in the number of new tokens, especially on the Solana network. Since April, over one million new tokens have been created, with more than 640,000 on Solana alone, primarily meme coins.
The varying opinions and data points suggest that while meme coins are experiencing a remarkable rally, the sustainability of this trend is uncertain. Thus, it’s essential to proceed with caution, keeping an eye on market trends and the inherent risks involved. Never invest more than you can afford to lose.