The cryptocurrency market has been on a strong run this week, with many assets posting double-digit gains. Bitcoin (BTC), altcoins, and memecoins all rose on positive market sentiment, with Bitcoin returning to $68,000.
Due to volatility and attention on some assets, memecoin saw a stronger rally.
Dogecoin Leads Memecoin's Recovery
Dogecoin leads the top 10 memecoins by market cap, up 22.9% to trade at $0.14, still down from its previous peak.
Despite this, DOGE has maintained its momentum and is leading the memecoin market.
Recent activity has raised expectations that DOGE could surpass $1, although this remains challenging.
DOGE is up 6.2% in the past 24 hours, continuing to consolidate previous gains. Mog Coin is second with a 21% increase in inflows over the past seven days, currently trading at $0.0000020, up 6% on the day.
BRETT followed with a 20% gain this week, and today still maintains a 7% cash flow gain.
Most memecoins are in positive territory, with short-term gains similar to the memecoin craze of early 2024.
Is this price increase sustainable?
While memecoin's rally is a positive sign, there are concerns about its long-term sustainability.
These tokens are known for their high volatility, often swinging wildly in response to market movements.
Some proponents believe that interest rate cuts will attract money into memecoin, as the policy boosts investment in risk assets.
However, another view is that the price correction of Bitcoin and other major assets will lead to a drop in the price of memecoin, affecting general adoption.
Global macro factors such as inflation and regulation will also impact memecoin growth.
