Despite frequent criticism for lack of utility, the overall market capitalization of memecoins has reached an important milestone, currently totaling an astonishing $140 billion, closely tied to market speculation and popular trends.
In light of this significant growth, AMBCrypto conducted an in-depth exploration of the performance of mainstream memecoins, aiming to uncover the underlying factors driving their value surge.
Focus on memecoin performance
When it comes to memecoins, Dogecoin (DOGE) and Shiba Inu (SHIB) undoubtedly take center stage. As the world's most influential memecoin, DOGE has performed particularly well in the past month, achieving a remarkable 126% price increase, further proving its unique position in the market.
This significant surge has pushed DOGE to the seventh rank in the cryptocurrency market capitalization leaderboard.
The price trend of Shiba Inu also remains bullish, as the memecoin's price surged over 65% last month, making it the 13th largest cryptocurrency. However, despite the impressive figures, the market sentiment surrounding these two memecoins has shifted.
Data from Santiment shows that the social dominance of DOGE and SHIB has declined, reflecting a decrease in their popularity. Additionally, their weighted sentiment has also dropped significantly—indicating an increase in bearish sentiment.
In addition to the significant price increases of the top two memecoins, Solana [SOL] has also played a role in the rise of memecoin dominance.
The blockchain has recently witnessed an influx of various meme-based currencies, with several of them holding significant market capitalizations, such as Dogewifhat [WIF] and Bonk [BONK].
In fact, it is worth noting that while DOGE and SHIB have merged, the price of BONK surged 5% in the past 24 hours.
As the memecoin space evolves, new competitors have emerged, potentially challenging companies like Solana. Coinbase's BASE has joined the memecoin frenzy by recently launching several meme-based tokens.
As a top BASE memecoin, BRETT has seen a significant price increase of 128% over the past 30 days.
What are the expectations for DOGE and SHIB?
With the volatility of the top two meme coins declining, AMBCrypto assessed their daily charts to identify what can be gleaned. Starting with DOGE, the chart of the memecoin has formed a bullish ascending triangle pattern.
At the time of writing, the stock is testing the resistance level of the pattern, and breaking through this pattern could trigger another bullish rebound. Given the upward trend in the Chaikin Money Flow (CMF), the likelihood of this occurring is high, indicating increasing buying pressure.
Unlike DOGE, SHIB's buying pressure is declining, as evidenced by the drop in the Relative Strength Index (RSI).
Nevertheless, the MA crossover indicates that the 9-day MA is above the 21-day MA, providing bulls with an opportunity to continue dominating the market.
