Currently, memecoins are starting to make waves in the market, with the Meme-coins Index reportedly increasing by 90% in November. This growth, stemming from new listings and retail community interest, has made memecoins a focal area in the cryptocurrency world.
The Memecoin index rises with the leading tokens in the forefront.
The GMMEME index, which tracks memecoins such as PEPE, SHIB, and DOGE, rose by 90% in November according to insights from The Block. Meanwhile, other cryptocurrency indices, such as GM30 and GML1, saw an average increase of 36% during the same period.
The performance of memecoins can be seen through PEPEToken, BONK, and WIF, which recorded weekly increases of 71.33%, 100%, and 32%, respectively. A significant part of this momentum may be due to major listings. For instance, both Coinbase and Robinhood recently introduced the PEPE and WIF tokens, stimulating a lot of speculative trading.
ChainInsights cryptocurrency analyst, Julia Kim, stated, "The introduction of meme-coins onto established cryptocurrency trading platforms like Coinbase shows a strategic shift focused on retail demand."
Such listings also attract a new group of retail investors with higher trading volumes, seen as a sign of increased activity in small-cap and speculative tokens.
Market surprises: PNUT and MOODENG stand out.
Not only do they themselves have a high success rate, but other memecoins are also performing excellently outside the GMMEME index. For example, P Invigorating, based on the internet-famous character P'Nut the squirrel, recorded a price increase of 1,500%. This led to its market capitalization increasing by an additional $1.68 billion within a week, thanks to its listing on the spot market on Binance combined with viral posts from 'technoking' Elon Musk on X.
MOODENG, a relatively new memecoin created to mimic other popular coins, has increased by 47% during the same period. Such performances indicate a growing interest in tokens that have a storyline or may relate to meme branding.
Many have dismissed memecoins as a useless creation, but the general public cannot deny the success of many of these currencies. While the same token is purchasing more utility-based cryptocurrencies, retail investors seem more interested in these equivalent asset tokens, likely due to speculation.
Political change and exchange strategy.
Furthermore, the increase in memecoin participation levels may also relate to political and regulatory issues. The recent U.S. presidential election brought a victory for Donald Trump, leading many to believe that the situation could improve for cryptocurrency. There is hope that the Trump administration will avoid strict measures to regulate the purchase and use of cryptocurrencies, in contrast to the current measures being implemented.
According to John Patel, a managing analyst at CryptoPolicy Watch, some industry insiders view Trump's victory as a certainty, prompting cryptocurrency exchanges to prioritize the listing of tokens for high-demand assets like memecoins.
Binance and Coinbase, along with other exchanges, seem to be capitalizing on this positivity, listing extremely risky and completely unfamiliar tokens as a way to attract users and profit in the process. A large number of memecoins are being listed in large quantities over a short period, and this move shows that exchanges are willing to adapt to market developments.
Conclusion: Memecoins redefine the cryptocurrency space.
This month, the Memecoin Index increased by 90%, demonstrating the growing impact of memecoins on the cryptocurrency space. Tokens like PEPE, WIF, and PNUT are at the center of trading activities and are driven by the enthusiasm of retail investors that have turned this sector into a gold mine for both fund managers and exchanges.
Meanwhile, memecoin continues to receive much criticism due to the fact that most of them are products of pump and dump activities driven by speculative sentiment, however they are causing a significant change by attracting the attention of traders as well as witnessing an increasing trading volume.
