The cryptocurrency market has witnessed an extraordinary rally in the memecoin sector over the past week, with popular tokens such as PEPE, Floki, Bonk, and others achieving significant gains.
According to Santiment, these memecoins have seen an average increase in trading volume of over 3,000%, alongside a price surge of more than 500%. This spike in activity has not only pushed the prices up but has also led to many memecoins recording new all-time highs.
Ethereum-based Pepe has experienced a price increase of over 370%, with its trading volume reaching into the billions.
Despite being ranked 44th in terms of market cap, Pepe’s trading volume has climbed to the eighth largest. Within just two days, Pepe’s market cap soared from $1.5 billion to $3 billion.
Solana-based Bonk has also seen remarkable growth, with a 190% price increase and trading near its all-time high of 0.0000345. Floki, another trending memecoin, has enjoyed a 350% surge in its weekly price charts, boasting the 16th largest trading volume.
Notably, most memecoins experiencing triple-digit growth are relatively new to the market, contrasting with established memecoins like Dogecoin and Shiba Inu, which have also seen bullish growth; Dogecoin recorded a 90% weekly gain, while Shiba Inu is up 175%.
This memecoin frenzy mirrors the bull run of 2021, led by Dogecoin with support from notable figures such as Elon Musk.
Each cycle of memecoin volatility has presented opportunities for some investors to achieve substantial returns in short periods, though it has also led to significant losses for many.
Critics argue that the speculative nature of these tokens reflects poorly on the broader cryptocurrency market, highlighting the volatility and risk associated with investing in memecoins. Despite their potential for rapid gains, memecoins have also experienced sharp declines, with some losing over 80% of their value from their peaks.
