The market rally inspired by a jump in Bitcoin’s price has impacted meme coins, boosting several tokens to new highs. Meme coins across categories ranging from Dog-themed, Cat-themed, political, or Solana-themed assets have recorded new flows as funds continue to enter the market. The meme market cap stands at $67.5 billion, soaring 2.8% in the last 24 hours amid wider figures in the last 30 days. Daily trading volumes are also above average at $9.9 billion.
Tokens Ignite on BTC Price Impact
Over the years, a major jump in the Bitcoin price has translated to more wins for the meme tokens. This was the case in Q1 2024 a period known for the popular meme coin frenzy and similar inflows leading to bullish peaks. A major reason for this occurrence is the volatility of meme tokens which soars easily on market sentiments. Conversely, a slight dip can lead to widespread losses in a short timeframe.
Most meme coins have no underlying utility and, as a result, move with the wider market with its low prices, leading to wider price jumps. The approval of spot Bitcoin ETFs, which saw BTC hit an all-time high, isn’t the only factor behind a recent meme token’s uphill climb. Policy rate cuts by central banks also spurred a similar reaction in the market.
The United States election, which is tipped to usher in fresh crypto legislation in the country, will ignite the meme coins, as seen in recent weeks. Fund flows to these tokens are linked to Bitcoin because they are traded largely on sentiments without utility.
Meme Coins Notch Double-Digit Gains
The charts show several meme coins outpacing the market with double-digit gains while some soared over 100%. In the last seven days, DOGE is up 21.7%, while POPCAT and NEIRO moved north by 14.4% and 18.2%, respectively. SHIB, WIF, and other assets also saw decent gains in the same period, boosting the ecosystem.
