IntoTheBlock experts point out that meme coin speculative sentiment is increasing amidst the ongoing bull market.
According to the latest IntoTheBlock report, traders are increasingly turning to speculative opportunities that promise high returns. This trend is evident across the meme coin sector, as seen in the emergence of new meme coins and the resurgence of older coins becoming popular again.
Analysts point out that the same trends in speculative activity, as evidenced by the performance of the meme coin sector, have been observed in previous cycles and are now starting to emerge in the current cycle as well.
The Memecoin category recently recorded its highest trading volume, surpassing 2021 bull market levels. This surge was driven in part by Dogecoin (DOGE), which surpassed 2 million transactions in one day, IntoTheBlock noted.
However, the 2024 bull market has several differences compared to previous performances. In just one month, the market capitalization of the meme coin category more than doubled.
“The overall market capitalization of the meme coin category recently hit a cyclical peak of over $50 billion.”
IntoTheBlock Report
Blockchains with low transaction fees, such as Solana, Avalanche, and Base, have become the platforms of choice for many of these new meme coins. Low gas fees make these blockchain transactions more accessible to individual investors.
However, according to analysts, the sustainability of this growth depends on broader market dynamics, including potential changes in important cryptocurrencies such as Bitcoin (BTC), which could impact the trajectory of the meme coin market.
Ethereum co-founder Vitalik Buterin also said in a recent report that meme coins have become a hot topic in the cryptocurrency community. Buterin proposes using these tokens to raise funds for charitable causes.