Memecoins Have Been Leading The Market For Several Days

The market capitalization of the memecoin sector has at times surged nearly 30% in the past 24 hours, continuously grabbing the spotlight compared to the rest of the global crypto market, which has been trading sideways.

Market capitalization of the memecoin. Source: CoinGecko

According to data from CoinGecko, the market capitalization of the memecoin market is currently approximately $35 billion USD. Over the past 7 days, major memecoins such as Dogecoin (DOGE), Shiba Inu (SHIB), Bonk (BONK), and Pepe (PEPE) have seen significant increases of 50%, 49%, 95%, and 172.8% respectively.

Some leading memecoins. Source: CoinGecko

Notably, dogwifhat (WIF), a Solana-based dog meme coin just listed on Robinhood Europe this morning, has experienced a strong surge of over 225% in the week and jumped 30% right after the news.

According to the announcement, the Robinhood Crypto platform will list Dogwifhat (WIF). CoinGecko market data shows that WIF is currently trading at $0.87, a 24-hour increase of 5.3%.https://t.co/1Gg8p74GLU

— Wu Blockchain (@WuBlockchain) March 1, 2024

Floki (FLOKI) is also a valuable asset worth mentioning. This memecoin has surged over 80% during the week, with the reason being that DWF Labs has announced a $10 million USD purchase of FLOKI as part of their commitment to support the development of this ecosystem.

DWF LABS TO PURCHASE $10,000,000 IN FLOKI TOKENS TO SUPPORT THE FLOKI ECOSYSTEM

DWF Labs will purchase $10,000,000 in $FLOKI tokens as part of their commitment towards supporting the #Floki Ecosystem.

FULL ANNOUNCEMENT: https://t.co/ZNTsiyqZzp pic.twitter.com/gBdx6w6ygO

— FLOKI (@RealFlokiInu) February 27, 2024

At the time of reporting, the upward momentum of memecoins has significantly slowed down, but it may just be undergoing a phase of consolidation alongside BTC, the flagship cryptocurrency.

It can be seen that the willingness to take risks is contributing to the recent recovery of memecoins. As the price of Bitcoin (BTC) approaches its previous peak of $69,000 USD, the market becomes riskier, and capital starts to shift into more speculative tokens, with memecoins leading this list.

Because users are often willing to gamble a small investment in hopes of making a large profit, memecoins resonate with this sentiment. Furthermore, advertising memecoins is also easier in the context of a positive market sentiment and investors’ lack of caution.