The meme coin market witnessed a resurgence, with its total valuation climbing over 7% within a single day, surpassing the $136 billion mark as per CoinGecko data. This spike comes as Dogecoin (DOGE) and Shiba Inu (SHIB) saw gains, while Pepe (PEPE) faced a minor correction. DOGE currently trades at approximately $0.41500, still trailing its 2024 peak of $0.48434 by 14%. Shifting sentiment has also been reflected on derivatives platforms such as Binance and OKX, where long-to-short ratios exceeded 4, signaling bullish sentiment among traders.
The broader crypto market also played a pivotal role. Bitcoin (BTC), after briefly dipping on Tuesday, rebounded above $100,000 midweek. This recovery helped stabilize meme coins, which had stumbled earlier in the week. On-chain analytics reveal rising realized profit/loss metrics for Bitcoin, indicating traders are securing profits. Historically, these profits often rotate into altcoins, particularly high-interest meme tokens, sparking increased demand and trading activity.
Furthermore, trading volumes for DOGE, SHIB, and PEPE spiked, aligning with their respective price movements. This correlation between volume and price indicates heightened market demand, likely driven by new entrants on exchanges. Notably, Shiba Inu and Pepe saw open interest rise, with PEPE-linked derivatives like the 1000PEPE Index gaining over 3%. This uptick in trading activity, coupled with favorable market conditions, suggests meme coins could maintain their upward trajectory as capital rotates from Bitcoin profits into alternative digital assets.
The ongoing rally underscores the potential of meme coins as pivotal players in the crypto ecosystem. As market dynamics evolve, Dogecoin, Shiba Inu, and Pepe remain at the forefront, capturing traders' attention and positioning themselves for further growth in the months ahead.