- The memecoin sector witnessed a significant surge in price over the last few days.
- Despite the surge in price, the overall sentiment around the token fell significantly.
The memecoin sector was one of the few spaces that was impacted heavily by the recent market drawdown. However, as the markets have recovered, so have the prices of multiple memecoin tokens.
Memecoins are back in fashion
Pepe [PEPE], an Ethereum [ETH]-based token, led the charge with a remarkable 15.97% price increase, trading at $0.0000112.
This surge coincided with a broader market trend, as the total daily trading volume for cryptocurrencies doubled to approximately $1.65 billion.
Pepe’s market capitalization also skyrocketed by 23%, surpassing the $5 billion mark and securing its position as the 22nd largest cryptocurrency.
Further, the RSI (Relative Strength Index) fell materially in the last few days, implying that the token recently left the overbought territory.
Source; Trading View
Other memecoins joined the rally. Floki [FLOKI], a Solana [SOL]-based memecoin, experienced a 12.74% price surge, trading at $0.0001765.
Its market capitalization approached $1.79 billion, with a daily trading volume of $453 million.
Additionally, Dogwifhat [WIF] climbed 14.04% to reach a price of $2.08. As the 44th largest cryptocurrency by market cap, it recorded a daily trading volume of $632 million.
The dog based-themed meme coin was still down 55% from its all-time high of $4.85 attained on the 31st of March. The CMF (Chaikin Money Flow) for the coin also rose, indicating that the money flowing into WIF had also grown.
Source: Trading View
BRETT, the meme coin launched four months ago, was still up 12%, trading at $0.1334.
Despite the price surge, the overall social sentiment around these tokens fell. AMBCrypto’s analysis of Santiment’s data revealed that Social Sentiment around FLOKI, PEPE AND WIF had declined.
This indicated that the number of negative comments around these tokens had surpassed the positive ones.
Source: Santiment
The general surge in all these memecoins follows a rise in the largest crypto asset by market cap, Bitcoin [BTC], which had risen significantly over the past few days.
Despite this rise, Bitcoin’s market dominance slightly decreased by 0.26% to 52.63%, suggesting heightened activity in the altcoin market.
The global cryptocurrency market cap also witnessed a 1.6% increase, elevating to a total of $2.34 trillion. Simultaneously, the meme coin sector saw a notable surge, rising nearly 13% in the past 24 hours.
The sector’s market cap reached $53.1 billion.
Read Pepe’s [PEPE] Price Prediction 2024-25
The big jump in the meme coin market is often linked to Bitcoin’s performance due to its influence on the broader cryptocurrency market.
When Bitcoin performs well, it often leads to increased investor confidence and interest in altcoins, including meme coins.