Despite facing criticism for their lack of utility, memecoins have achieved a significant milestone in terms of market capitalization. These coins, known for their association with hype and market trends, now collectively possess a market cap exceeding $140 billion.
Therefore, CryptoCrypto conducted an investigation to analyze the performance of prominent memecoins and determine the driving forces behind this notable surge.
Exploring the Memecoin Landscape
When discussing memes in the cryptocurrency realm, it is almost impossible to overlook the influence of Dogecoin (DOGE) and Shiba Inu (SHIB). As the leading memecoin worldwide, DOGE demonstrated exceptional performance in the past month by recording a remarkable 126% price increase.
This substantial surge propelled DOGE to secure the 7th position among cryptocurrencies based on market capitalization.
Shiba Inu also experienced bullish price action, with the memecoin’s value surging by over 65% last month, placing it as the 13th largest cryptocurrency. Despite these impressive figures, there has been a shift in market sentiment surrounding both memecoins.
Data from Santiment indicated a decrease in social dominance for DOGE and SHIB, signaling a decline in their popularity. Additionally, their weighted sentiment observed a significant decline, indicating a growing bearish sentiment.
Besides the substantial price surges of the top two memecoins, Solana (SOL) also contributed to the rise in memecoin dominance.
The blockchain network has witnessed the emergence of numerous meme-inspired coins lately, with several achieving substantial market capitalizations such as Dogewifhat (WIF) and Bonk (BONK).
Interestingly, while DOGE and SHIB were consolidating, BONK’s value surged by 5% within the past 24 hours.
With the memecoin sector gaining momentum, new competitors have entered the arena, potentially challenging established projects like Solana. Coinbase’s BASE recently entered the memecoin craze by launching multiple meme-based coins.
BRETT, the leading BASE memecoin, experienced a significant 128% price surge in the last 30 days.
Future Prospects for DOGE and SHIB
Following a decrease in volatility for the top two meme-based coins, CryptoCrypto analyzed their daily charts to predict future movements. Starting with DOGE, a bullish ascending triangle pattern emerged on the memecoin’s chart.
Currently, it is testing the resistance level of the pattern, and a breakout could potentially trigger another bullish rally. The likelihood of this occurrence appears high as the Chaikin Money Flow (CMF) indicated an upward trend, suggesting increasing buying pressure.