Meme Coins Market Cap Soar To Over $54 Billion – Here’s What Is Driving The Surge
March 04 2024 - 8:00PM
NEWSBTC
The meme coins market cap is currently hovering above $54 billion
up by nearly 20% ion the past day. This surge is evident as roughly
seven meme coins now rank among the top 100 crypto by market
capitalization, marking a significant shift in investor interest
towards these once ‘speculative assets.’ A recent market report
from QCP Capital has shed light on this phenomenon,
disclosing what drives this meme coins surge. Related Reading:
CryptoQuant’s Bitcoin “Bull-Bear” Indicator Flags Price As
Overheated What Is Driving The Meme Coins Surge According to QCP
Capital, the price appreciation in meme coins can be attributed to
a “speculative buying frenzy” during the Asia trading session.
Particularly, the firm report suggests that the rallying meme coins
is driven by retail FOMO (Fear of Missing Out), indicating a
significant shift in the dynamics of market participation. The
analysts from QCP Capital also observed an increase in leveraged
buying activity, hinting at the “robust” momentum that could
potentially pause should Bitcoin surpass its all-time high in
dollar terms. The market report read: Altcoins, especially
memecoins, are rallying hard as retail FOMO really kicks in now.
Leveraged buyers will likely not relent until we break all-time
highs, which could be any time now. So far, major meme coins such
as Dogecoin, Shiba Inu, PEPE, and BONK have registered. massive
gains, with increases of 27%, 57%, 46%, and 68% respectively over
the last 24 hours. These gains reflect the growing investor
interest in meme coins and underscore the broader trend of retail
investment driving the crypto market. Dogecoin and Shiba Inu, in
particular, have solidified their positions within the top 15
global crypto market cap rankings, demonstrating the significant
traction meme coins have gained among investors. Retail
Participation Fuelling The Crypto Rally The surge in memecoins is
part of a larger trend of increased retail participation in the
cryptocurrency market. Analysts from JPMorgan have echoed the
observations made by QCP Capital, noting that retail traders have
played a crucial role in the cryptocurrency market rally observed
throughout February. Related Reading: Bitcoin Will Reach A New
All-Time High This Week, Matrixport Head Of Research Says The study
carried out by the research group at JPMorgan, under the guidance
of Managing Director Nikolaos Panigirtzoglou, highlighted the
significant role of “small-scale investors,” commonly known as
‘mom-and-pop’ traders, in driving prominent cryptocurrencies like
Bitcoin to a two-year high last month. The researchers noted: We
find that the retail impulse into crypto rebounded in February,
thus likely responsible for this month’s strong crypto market
rally. Meanwhile, over the past 24 hours, Bitcoin has reached new
heights, trading above $66,000, marking a nearly 30% increase over
the past week. This upward trajectory is also evident in the
asset’s market cap, which currently exceeds $1.2 trillion. Featured
image from Unsplash, Chart from TradingView
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