The cryptocurrency market is witnessing a dramatic resurgence in memecoins, with Ethereum-based tokens like PEPE, SHIB, and BONK leading the charge. Over the past week, the memecoin market cap surged by 29%, hitting $72 billion—a staggering monthly increase of 250%. Meanwhile, Bitcoin continues its dominance, recently breaking $120,000, but altcoins are stealing the spotlight. What’s fueling this explosive growth, and is this rally sustainable?
Memecoins, once dismissed as speculative jokes, are now serious contenders in the crypto market. Among the top performers:
PEPE has skyrocketed by 95% in the past month, with its market cap reaching $4.54 billion. Whale activity has surged by 416% in 24 hours, with large transactions exceeding $100,000 driving momentum.
Shiba Inu (SHIB) exchange reserves have dropped to their lowest levels since 2023, signaling reduced selling pressure and potential for a price surge. Analysts predict SHIB could rally toward $0.000018 by the end of July.
BONK, Solana’s top memecoin, has seen a 300% spike in trading volume, with traders betting on further upside as meme season heats up.
This resurgence isn’t just retail-driven—institutional interest is growing. Ethereum ETFs recorded a record $7.26 billion inflow in a single day, with BlackRock’s ETH ETF alone attracting $4.99 billion.
Bitcoin’s market dominance has slipped from 65.68% to 63.09% in a week, historically a precursor to altcoin rallies. Analysts suggest that as BTC stabilizes near all-time highs, traders rotate profits into high-risk, high-reward memecoins.
The approval of spot Ethereum ETFs has injected fresh capital into the ecosystem. Since most memecoins are ERC-20 tokens, the surge in ETH liquidity is cascading into smaller-cap assets.
Data shows SHIB exchange reserves are at multi-year lows, indicating reduced sell-side pressure. Similarly, PEPE’s net inflows surged by 1.3 trillion tokens in 24 hours, suggesting strong accumulation.
The Crypto Fear & Greed Index has climbed to 70 (Greed), reflecting bullish momentum. Historically, such sentiment leads to extended memecoin rallies before corrections.
Analysts note that if PEPE maintains its current trajectory, it could challenge its all-time high of $0.00008616. However, RSI levels near 70 suggest short-term overbought conditions.
SHIB’s 50-day SMA has crossed bullish, and if it holds above $0.000015, a 26% rally toward $0.000018 is plausible by August.
With Solana’s DeFi activity rising, BONK could benefit from network effects. Some traders anticipate a 40% rally if Bitcoin remains stable.
Despite the euphoria, risks loom:
The U.S. House rejected key crypto bills, including the CLARITY Act, causing short-term volatility.
Memecoins remain highly speculative, with many lacking utility. A market-wide correction could trigger sharp sell-offs.
The current memecoin rally is backed by strong fundamentals—ETF inflows, whale accumulation, and shifting market dynamics. However, traders should remain cautious, as these assets are prone to extreme volatility.
What’s your take? Will memecoins continue their surge, or is a correction imminent? Share your thoughts on our X.
Disclaimer: The information provided in this section is for reference only and does not represent any investment advice or the official views of FameEX.
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