The alternative cryptocurrency market has experienced significant growth following the Federal Reserve’s change in direction in mid-September, solidifying investors’ belief that they are witnessing the early stages of the highly anticipated alt season. Nevertheless, a familiar pattern is emerging currently – the dominance of Memecoins.
Founders of Glassnode have observed this trend, asserting that Memecoins have taken the lead in the initial phase of the alt season. They pointed out that dogwifhat [WIF], Shiba Inu [SHIB], and Pepe [PEPE] have displayed remarkable momentum.
“We have recently entered Altcoin Season, and Memecoins are already gaining significant momentum.”
SHIB Emerges as Leader in Memecoin Surge
On September 27, 8 out of the top 10 Memecoins, including SHIB, WIF, and MOG, recorded double-digit increases ranging from 25% to 50% in the last 30 days of trading. Notably, SHIB stood out during this week’s surge, registering a remarkable 40% uptick.
Currently, SHIB’s upward trend has slowed down slightly, hovering around the 200-day Moving Average (MA), with the Relative Strength Index (RSI) indicating overbought conditions.
Comparatively, there appears to be a heightened speculative interest in Memecoins, which could drive further growth in this sector.
According to Coinglass, Memecoins ranked first (12%) in terms of Open Interest (OI) over the last 24 hours, doubling the interest seen in the second-ranking sector – Gaming, which stood at 6.8%.
Memecoins also secured the third position in terms of trading volume during the same period, highlighting significant liquidity influx and speculative activity in this category over the weekend.
This intense speculative activity surrounding Memecoins may reinforce its market dominance in the third quarter. In the first half of 2024, Memecoins emerged as the best performer, outshining even Bitcoin [BTC] in terms of returns.
As of the current moment, Memecoins have recorded the highest YTD (year-to-date) returns, with an impressive 1160% gain.