Why Are Memecoin Prices Skyrocketing Again?

Dogecoin, Shiba Inu, and a host of other memecoins are seeing a strong rally today, primarily driven by a headline-making announcement from billionaire Elon Musk — along with several supporting factors.

After a surge in demand for utility-based tokens in late 2024, the memecoin market fell into a slump. Nearly $44 billion in market cap evaporated in just three weeks. However, interest is now returning, with DOGE, SHIB, and other meme-themed tokens seeing significant gains.

DOGE, SHIB, FLOKI and More Memecoins Take Off

According to CoinMarketCap data, the memecoin sector is posting substantial gains. Leading the pack is Dogecoin (DOGE), which jumped 6% today to reach $0.173. Shiba Inu (SHIB) followed with a 3% increase, and a remarkable 101% surge in trading volume, currently trading around $0.00001179.

The top performer of the day is BUILDon (B), which surged 28%, followed by Floki with a 14% rally and SPX6900 with a 12% gain. Other Solana-based meme tokens like BONK, TRUMP, and Pepe have also posted strong upward moves.

Interestingly, this momentum is not seen across the broader crypto market, highlighting memecoins as today’s standout performers.

What’s Driving the Surge in Memecoin Prices?

The main catalyst behind today’s surge appears to be Elon Musk’s announcement of forming the “America Party.” With Musk’s massive influence in the crypto space and his history with tokens like DOGE, this move sparked a new wave of bullish sentiment.

Musk also hinted that the new party would be crypto-friendly — especially toward Bitcoin — adding further fuel to the market’s optimism.

Adding to the momentum is the positive sentiment from Donald Trump’s BBB bill, as well as several major crypto events and policy developments expected this week.

As Dogecoin broke through the key resistance level at $0.17, bullish sentiment spread across the memecoin category. AI-themed meme tokens have also gained traction, driven by renewed hype and advances in the AI industry.

Recently, Grayscale launched a new index tracking 24 AI tokens, revealing that the category has tripled in size since 2023 — and still holds significant growth potential.

Last but not least, capital rotation is playing a key role. As market conditions stabilize, investor risk appetite is increasing, bringing fresh inflows into high-volatility assets like memecoins.