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Will the surge in meme coins continue? Opinions are divided on whether this trend will last or if it’s just a bubble waiting to burst.
New Entrants Making the Noise
Meme coins are back in the spotlight. In the past 30 days, the meme coin market cap has surged 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% gain, trading at $0.1614. Not far behind is Shiba Inu (SHIB), up by 10% and trading at $0.00002598.
However, the real stars of this rally are Pepecoin (PEPE) and FLOKI (FLOKI). PEPE has skyrocketed by over 100% in just 30 days, now trading at $0.0000153. FLOKI isn’t far behind, with a 64% increase, trading at $0.0002683.
The excitement doesn’t stop there. A whale recently scooped up 90 million DOGE, valued at $14.28 million, from Robinhood. Additionally, an on-chain transaction tracking platform reported a massive movement of 499.42 million DOGE, worth around $81.10 million, between two unknown wallets.
Why Meme Coins Are Rallying
Several factors are driving the meme coin rally, and it’s not just about the 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 only seen a modest bump, this regulatory green light 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.
It’s worth noting 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 detail the structure and management of the ETFs, are yet to be approved. Once these are green-lit, we could see even more market activity and potential price movements.
Community and Experts Weigh In: Meme Coin Rally to Continue?
As the meme coin rally continues to capture attention, opinions are divided on whether this trend will last or if it’s just a bubble waiting to burst.
“Time to pay attention to major meme coins. $FLOKI and $DOGE are currently sitting right at their uptrend support. If they bounce many memes will probably follow. If they lose support the whole meme coin market will have a deeper correction.”
Another user expressed concerns about the capital flow into meme coins and celebrity tokens. He pointed out that many good projects are suffering as investors pour money into these high-risk assets.
“Good projects are bleeding as plebs are putting everything in memecoins and celeb coins. Now’s the time to buy. When the inevitable rugs happen, capital will rotate to quality. That is when the real pumps happen.”
A prominent figure from Andreessen Horowitz (a16z), Eddy Lazzarin, also provided a critical perspective. He compared the meme coin ecosystem to a risky casino, suggesting that it presents the crypto industry in a negative light.
“Memecoins alter how the public, regulators, and entrepreneurs see crypto. At best, it looks like a risky casino. Or a series of false promises masking a casino. This deeply affects adoption, regulation/laws, and builder behavior.”
Ethereum co-founder Vitalik Buterin also chimed in, criticizing the recent surge of meme coins, especially those with dubious themes or associations. Buterin expressed his lack of enthusiasm for coins that promise excitement initially but lead to disappointment and losses later.
Meanwhile, Binance reported an explosion 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, mainly meme coins.
The diverse opinions and data points suggest that while meme coins are enjoying a remarkable rally, the sustainability of this trend is questionable. Hence, it’s crucial for you to tread carefully, keeping an eye on market trends and the inherent risks involved. Never invest more than you can afford to lose.
For more updates and insights into the cryptocurrency market, explore more news on Global Crypto News.
