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This week, we dive into the resurgence of the meme coin sector. We examine its market capitalization, the introduction of new players and the recent spike in trading activity, alongside the heightened speculation from the crypto community.
Network Fees - Sum of total fees spent to use a particular blockchain. This tracks the willingness to spend and demand to use Bitcoin or Ether
Bitcoin fees decreased by 17.5% this week, marking the third week of consecutive dropping
Fees on Ethereum recorded a 32% drop as more activity migrates to L2s
Exchanges Netflows - The net amount of inflows minus outflows of a specific crypto-asset going in/out of centralized exchanges
$610M worth of Bitcoin was withdrawn from CEXs as prices rebound
ETH recorded $380M net outflows from exchanges, as regulatory FUD calmed down and price increased 3%
The Meme Coin Resurgence
With the ongoing bull market, users are increasingly drawn to speculative opportunities with promising high returns. This trend is evident throughout the Meme coin sector as can be noticed by the emergence of new meme coins and the resurgence of older ones gaining popularity again.
This trend of speculative activities has been observed in previous cycles and are now beginning to appear in the current one. A significant parallel between the current situation and 2020 is the widespread expectation that major central banks, including the Federal Reserve, will reduce interest rates in the upcoming months. Expectations of renewed liquidity easing are promising for assets positioned far along the risk curve.
Over $50 billion - The total market capitalization for the meme coin category recently hit a cycle peak of over $50 billion
Within just a month, the meme coin category as a whole has seen its market capitalization more than double
Newcomers like Jeo Boden and Dogwifhat have quickly risen to fame and achieved significant market capitalization, becoming key contributors to this surge
Blockchains with low transaction fees, such as Solana, Avalanche, and L2s like Base, have become the preferred platforms for many of these new meme coins. Their lower gas fees make it more accessible for retail investors to trade on these blockchains
66% of SHIB addresses are in profit - this marks the highest level since November 2021, when it achieved its all-time high.
With the coin's price on the rise, an increasing number of users will see their investments turn profitable, heightening the temptation to cash their gains
Moreover, a potential downturn in Bitcoin, the leading cryptocurrency, could lead to a decrease in the market capitalization of the meme coin sector
Last cycle's meme darlings like SHIB and DOGE are experiencing renewed interest following two years of underperformance
Risk Dashboards for Prisma Finance
We just released an advanced risk analytics dashboard for Prisma Finance. Explore risk indicators such as the mkUSD Collateralization Ratio, historical slippage and many more
All-Time High Number of Traders - The number of addresses holding meme coins for under thirty days has hit a record high this month
As prices in meme coins have spiked, so have the number of people speculating
The meme coin category recently recorded its highest number of transactions, exceeding the levels seen in the 2021 bull market. This surge has been partly driven by Dogecoin, which surpassed 2 million transactions in a single day
The number of traders indicator, shows the activity in addresses that have held the meme coins for less than one month. This one has seen a significant increase, reaching a cycle high. Throughout the last month, 769,000 new addresses have traded Dogecoin for the first time.
This suggests that speculation on these assets has surged far beyond usual levels
The meme coin sector is witnessing a resurgence, with market capitalization reaching new highs and an influx of new entrants and traders driving unprecedented levels of activity. This boom is fueled by speculative interest and low transaction fees on blockchains like Solana, Avalanche, and Base, making it easier for retail investors to participate. However, the sustainability of this growth is contingent upon broader market dynamics, including potential shifts in major cryptocurrencies like Bitcoin, which could influence the meme coin market's trajectory.
Introducing IoTeX Analytics
We added analytics support for IoTeX and tokens on the IoTeX network this week. Are you interested in DePIN and want to learn more about IoTeX? Thanks to our partnership with IoTeX, you can explore all the IoTeX data for free.
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