Markets

Is the rising market value of meme coins a sign of bigger things to come?

Published

8 months ago

3 June, 2024

Meme coin mania: tracking the surge of Dogecoin, Shiba Inu, Trump tokens and more

Will the rise in meme coins continue? Opinions are divided on whether this trend will last or if it is just a bubble waiting to burst.

Meme coins are back in the spotlight. In the last 30 days, the meme coin market value increased by more than 36%, leaving many traditional altcoins and even Bitcoin (Bitcoin) in the dust. From June 3rd, the market value is at a staggering $63.5 billion.

Seven of the top 100 cryptocurrencies by market cap are meme coins. Dogecoin (DOGE), the largest meme coin by market value, saw a 22% gain, trading at US$0.1614. Not far behind is Shiba Inu (SHIB), up 10% and trading at $0.00002598.

However, the real stars of this rally are Pepecoin (PEPE) and FLOKI (FLOKI). PEPE soared more than 100% in just 30 days, now trading at US$0.0000153. FLOKI is not far behind, up 64%, trading at $0.0002683.

The excitement doesn’t stop there. A whale recently raised 90 million DOGE, valued at $14.28 million, from Robinhood.

Additionally, Whale Alert, an on-chain transaction tracking platform, reported a massive movement of 499.42 million DOGE, worth around $81.10 million, between two unknown wallets.

So what is driving this rise in meme coins? Why are they outperforming many other cryptocurrencies? Let’s understand what’s fueling this hype and where it could go from here.

New entrants making noise

As meme coins continue to rise, Solana (SUN)-based meme coins are having their own spectacular run. Over the past 90 days, the Solana-based dogwifhat meme coin (WIF) has soared more than 134%, now trading at $3.39.

But this is just the beginning. A new player, Book of Meme (GOOD), has rocketed into the top 100 cryptocurrencies with an impressive gain of over 1,385% in the last 90 days, currently trading at $0.01354.

The rise in Solana-based meme coins is not happening in isolation. Celebrity tokens recently made their debut on Solana, adding to the buzz surrounding meme coins.

Last week, Caitlyn Jenner released a coin called JENNER via the SOL-based meme coin portal bomba.fun. However, the launch was marred by controversy.

Shortly after trading began, developers abandoned the token, causing its price to drop and leading to accusations against Jenner of orchestrating a rug pull.

Later reports 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 role as an intermediary to profit from the celebrity’s meme currency.

if anyone wants the TLDR on @Caitlyn_Jenner situation here is

It has never been hacked. Her team was socially designed by a guy named Sahil.

He was the “middle man” and his role was to pitch the token to Caitlyn as the team knew nothing about cryptography.

after… pic.twitter.com/yZloKHlon6

-Roxo (@CryptoRoxo) May 27, 2024

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 is up more than 30,000%, reaching a market cap of $30 million.

Iggy Azelea held a successful stealth memecoin launch 🤯

About 2.5 hours ago, a token called $iggy released, it briefly soared to $4 to $5 million and was then sold.

At the same time, a token called $MOM released.

Iggy tweeted about 30 minutes ago and reached a value of $15 million pic.twitter.com/GexTU81rSZ

-TylerD 🧙‍♂️ (@Tyler_Did_It) May 29, 2024

But the drama didn’t stop there. Sahil also launched an IGGY coin, trying to capitalize on the Azalea hype and making 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 enthusiasm for the decentralized meme ecosystem.

“This is a bet, this is a game. That’s why it’s fun. Play the game or don’t play. It’s your decision,” Azalea said during an online discussion.

Why meme coins are rising

Several factors are driving the rise in meme coins, and it’s not just fun and memes. One of the main reasons is the positive news from regulatory bodies.

The Securities and Exchange Commission (SEC) recently approved eight spot Ether exchange-traded funds (ETFs) of large companies. While Ether itself only saw a modest surge, this regulatory green light 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 spreads to smaller projects. Meme coins, with their relatively small market capitalizations, often witness wild swings during these bull periods.

However, these are not just one-off events, such as ETF approvals. The recent hype around Solana has carved out a niche for itself as the go-to network for “speculative fun,” attracting traders willing to bet on meme coins.

It is worth noting that the location ETH ETF approvals are still in the early stages. The SEC approved initial Forms 19b-4, allowing securities to be listed on exchanges.

However, the final S-1 filings, which detail the structure and management of the ETFs, have not yet been approved. Once they get the green light, we could see even more market activity and possible price movements.

Community and experts weigh in: Will the meme coin rally continue?

As the rise in meme coins continues to draw attention, opinions are divided on whether this trend will last or if it is just a bubble waiting to burst.

On Twitter (X), a crypto analyst spoke about the importance of current price levels for top meme coins such as FLOKI and DOGE. According to him, these coins are at uptrend support, a crucial level that could determine the next move.

It’s time to pay attention to the top meme coins$FLOKI It is $DOGE are currently sitting at their uptrend support

If they bounce, lots of memes will probably follow
If they lose support, the entire meme coin market will see a deeper correction pic.twitter.com/ISg7h4F0vz

— crypto bullet 📈 (@SilverBulletBTC) May 31, 2024

If they recover from this support, we could see a broader recovery in meme coins. However, if they lose support, a deeper correction could occur, affecting the entire meme coin market.

Another user expressed concern about the flow of capital into meme coins and celebrity tokens. He highlighted that many good projects are suffering as investors pour money into these high-risk assets.

Good projects are bleeding while the plebs put everything into memecoins and celebrity coins.

Now is the time to buy. When the inevitable crashes happen, capital will pivot toward quality.

That’s where the real bombs happen.

Turn on notifications, I’m going to make millions again.

-Bloodgood (@bloodgoodBTC) May 31, 2024

However, he sees this as a temporary phase, predicting that once the inevitable corrections (or “rugs”) happen, capital will return to investing in quality projects.

A prominent Andreessen Horowitz (a16z) figure, 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 change the way the public, regulators and entrepreneurs view cryptography.

At best, it looks like a risky casino. Or a series of false promises masking a casino.

This profoundly impacts adoption, regulation/laws, and builder behavior.

I see the damage every day. You should too.

-Eddy Lazzarin 🟠🔭 (@eddylazzarin) April 24, 2024

“At best, it looks like a risky casino. Or a series of false promises masquerading as a casino,” said Lazzarin, warning that this perception could hinder adoption, regulation and innovation in the industry.

Ethereum co-founder Vitalik Buterin also chimed in, criticizing the recent rise in meme coins, especially those with dubious themes or associations.

Buterin expressed his lack of enthusiasm for currencies that initially promise excitement 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 a million new tokens have been created, with over 640,000 on Solana alone, mostly meme coins.

Diverse opinions and data suggest that although meme coins are enjoying a remarkable recovery, the sustainability of this trend is questionable. Therefore, it is essential that you be careful, keeping an eye on market trends and the inherent risks involved. Never invest more than you can afford to lose.

Source

Markets

Crypto Markets Rebound as Spot Bitcoin ETFs Attract Massive Inflows

Published

6 months ago

17 July, 2024

FinCrypt Staff

Crypto Markets Rebound Ahead of Early Ethereum ETF Approval

This week saw $722 million worth of Bitcoin spot ETF inflows, including the largest daily inflow in a month.

Cryptocurrency markets rallied on Wednesday, driven by inflows into spot Bitcoin exchange-traded funds (ETFs).

The price of Bitcoin (BTC) is up 3% over the past 24 hours to last change hands at $65,200, according to CoinGecko. Ethereum (ETH) is up 2% and is trading at $3,471. Solana (SUN) and Polkadot (POINT) increased by 4%.

Bitcoin spot ETFs saw $422 million in daily inflows on Tuesday, the highest in the past 30 days, according to Far side data, . The all-time record for a single day was $1.05 billion on March 12.

Among Tuesday’s top contributors, BlackRock’s IBIT led with $260 million in inflows, followed by Fidelity’s FBTC with $61 million. This week has already seen more than $722 million in inflows.

Among the top 100 cryptocurrencies by market cap, Worldcoin (WLD) led with a 28% increase, followed by Helium (HNT) with 20% and Lido DAO (LDO) with 15%.

Worldcoin, a decentralized identity project led by OpenAI CEO Sam Altman, announced is extending the lockups for early investors and team members. This means that tokens will be gradually released through 2029, instead of the original 2027 plan. Token unlocks are generally seen as a negative because they increase supply and early investors can sell their tokens for profit.

Meanwhile, XRP, the token of the XRP Ledger network, jumped 8% after the CME and CF benchmarks introduced new indices and reference rates for XRP.

U.S. stocks faced a downturn on Wednesday. The S&P 500 fell 1%, while the Nasdaq Composite and Dow Jones Industrial Average both fell 2%.

Source

Markets

Altcoins on the cusp of a major breakout – WLD, AR, and INJ prices could surge by 20% in the coming days

Published

6 months ago

17 July, 2024

FinCrypt Staff

Altcoins on the cusp of a major breakout – WLD, AR, and INJ prices could surge by 20% in the coming days

Crypto markets appear to have been taken over by the bulls as major tokens have surged above their crucial resistance zone. Bitcoin surged above $65,000 while Ethereum was above $3,500, and XRP, which had remained passive for quite some time, surged over 40% in the past few days to hit $0.6. The uptrend has been captured in most altcoins, with Worldcoin (WLD), Arweave (AR), and Injective (INJ) leading the rally. Here’s what to expect for these tokens in the coming days.

Worldcoin (WLD) Price Analysis

O Worldcoin Price has been trading inside a descending wedge since it marked a new ATH near $12 in the final days of Q1 2024. The recent price action helped the price break out of the upper resistance of the wedge, breaking above the crucial resistance zone between $2.21 and $2.39. Market sentiments have changed, but technicals suggest that the bulls may remain passive for a while, which could offer some room for a bearish pullback.

The price broke out of the wedge with a significant increase in volume, but the current volume suggests that the bulls have taken a step back. Meanwhile, the RSI is about to reach the upper boundary, which could attract bearish forces. Additionally, the DMI has undergone a bullish crossover, but the decline in the ADX suggests that the rally may remain consolidated above the gains. Therefore, the WLD price is expected to maintain a horizontal consolidation between $3 and $3.3 and trigger a fresh rally to $4.4 during the next bullish rally.

Arweave (AR) Price Analysis

Arweave formed a strong base around $25, which helped the rally trigger a recovery during the bearish attack. Mt. Gox and German terror forced the price to fall below $20. However, the recent price action has brought the altcoin within the bullish range and raised expectations of maintaining a decent uptrend for a few more days.

AR price has hit one of the major resistances around $30 to $31.5, which could act as a strong base once overcome. The buying volume is slowly increasing, which could keep the bullish hopes for the rally high. Moreover, the supertrend has just flashed a buy signal, indicating a clean reversal of the trend. Therefore, AR price seems primed to maintain a healthy uptrend and rally above $40. However, if the bulls maintain a similar trend, making new highs above $50 may not be a tedious task for the bulls.

Price Analysis of Injective (INJ)

Injective price has been showing sharp strength since the beginning of the year and hence, the recent turnaround is expected to revive a good uptrend going forward. The bears engulfed the rally to a large extent, but the recent price action suggests that the bulls have regained their dominance. Therefore, INJ price is expected to maintain a strong uptrend with a bearish interference on the way down.

INJ price has surged above the lower support zone and has registered consecutive bullish candles. Although the volume is below the required levels, the OBV is maintaining a sharp uptrend. Furthermore, the Ichimoku cloud lead span B is heading towards the lead span A and a healthy crossover indicates the start of a new uptrend. However, INJ price may be out of the bears’ reach once it secures the resistance zone between $30.77 and $32.12, which seems to be on the horizon.

Source

Markets

Ethereum at $3.5K, Exchange Supply Hits 34-Month High

Published

6 months ago

17 July, 2024

FinCrypt Staff

Ethereum at $3.5K, Exchange Supply Hits 34-Month High

Ethereum (ETH) supply on exchanges has hit a 34-month high as the asset’s price surpassed the $3,500 mark.

ETH has risen 2.3% over the past 24 hours and is trading at $3,490 at the time of writing. The second-largest cryptocurrency — with a market cap of $419 billion — briefly touched an intraday high of $3,517 earlier today.

ETH Price, Whale Activity, RSI, and Exchange Supply – July 17 | Source: Santiment

Ethereum’s daily trading volume also increased by 7.6% to reach $19.8 billion.

According to data provided by Santiment, the supply of Ethereum on exchanges has reached $19.52 million ETH. This level was last seen in September 2021, when the asset was trading around the same price.

On the other hand, data from the market intelligence platform shows that the number of whale transactions has fallen by 12% in the last day — falling from 8,730 to 7,629 unique transactions per day.

The move shows that the supply of Ethereum on exchanges has been increasing with small deposits rather than large transactions from whales.

Additionally, the ETH Relative Strength Index (RSI) is currently hovering at the 60-mark, per Santiment. The indicator shows that Ethereum is slightly overbought at this price point, but it may not be in a critical position due to its large market cap.

One of the main drivers of Ethereum price increase is ETH spot expectations ETFs in the US Investment products are scheduled to start trading on July 23rd.

Source

Markets

Bits + Beeps: How to Play the ‘Trump Trade’ in Cryptocurrencies After the Assassination Attempt

Published

6 months ago

17 July, 2024

FinCrypt Staff

Bits + Bips: How to Play the ‘Trump Trade’ in Crypto After the Assassination Attempt

Also, how much will the Fed cut rates (and when)? What will be the inflows into ETH ETFs? And what is the near future for Bitcoin?

Posted on July 17, 2024 at 12:00 PM EST.

Listen to the episode at Apple Podcasts, Spotify, Capsules, Source, Podcast Addict, Pocket molds, Amazon Musicor on your favorite podcast platform.

In this episode of Bits + Bips, hosts James Seyffart, Alex Kruger and Joe McCann, joined by guest Jack Platts, dive into the market reaction to the recent assassination attempt on former President Donald Trump, analyzing how this event will influence the 2024 US presidential election and the cryptocurrency markets.

They also cover potential rate cuts: Could there be a cut in July? How big could the September rate cut be? Could the decision be influenced by the upcoming election?

They also give their predictions on what percentage of BTC ETF inflows the ETH ETFs will reach, and James talks about what he expects for Grayscale’s ETHE (hint: his outlook would be positive for ETH).

Finally, they delve into what’s next for Bitcoin as the German government runs out of BTC and Mt. Gox distributions begin. Just now?

Program Highlights:

Whether Trump’s shooting decided the election and whether the event caused a “flight to safety”
How election markets are becoming a place to watch election probabilities and whether cryptocurrencies “lean right”
Whether rate cuts will occur in July or September and by how much they will cut: 25 bps or 50 bps
How Joe sees the relationship between global liquidity cycles, rate cuts, and the potential rise of Bitcoin
What are the new updates about Ethereum ETFs and their expected launch?
Why Solana Hasn’t Performed Significantly Better Since Trump News
What Market Breadth Indicates About the Current Market Rally and the Impact of Rates on Small Caps
Everyone’s predictions on ETH ETF inflows and how much outflow we’ll see on Grayscale’s ETHE
What’s Next for BTC After German Government Exits Bitcoin and Mt. Gox Giveaways Starting This Week