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Memecoins, these cryptocurrencies inspired by popular online culture, have always fascinated as well as divided, but their ability to capture billions in record time is undeniable. Last week, Shiba Inu, one of the most popular memecoins, jumped a spectacular 42%, adding $6 billion to its market cap. What is causing this sudden surge in interest in memecoins, and what implications might this have for the broader cryptoecosystem?
Shiba Inu leads memecoin rally
Last week Shiba Inu dominated the memecoin market with a meteoric rise. SHIB rose 42% in seven days, bringing its market capitalization to $20 billion, up from $14 billion. Such an increase places Shiba Inu as the 14th largest cryptocurrency by capitalization. While the increase may seem surprising, it is part of a broader trend where several memecoins, including PEPE, FLOKI, and MOG, have also seen double-digit increases. In just 24 hours, all of these cryptocurrencies have seen an increase of more than 10%, while BONK has seen an increase of 13% in the same period.
However, the reasons behind this Shiba Inu epidemic remain unclear. Some traders speculate that the appointment of Japan’s new prime minister, Shigeru Ishiba, may have fueled the rally, a hypothesis supported by statements such as Zaheer, manager of hedge fund Split Capital, who said: The price of SHIB rose 50% in two days simply because the new Japanese Prime Minister is called “ISHIBA”. Don’t ask your most ignorant friends for advice. »
The comeback of memecoins and the impact of launch platforms
Shiba Inu aside, the memecoin rally appears to be part of a broader market dynamic. Specialized platforms such as Pump.Fun have seen a significant increase in activity with over 50,000 active addresses per day, a number not seen since mid-August. Transaction volume on these platforms also exploded, surpassing $67 million on September 26, more than double the $30 million recorded a week earlier. This renewed activity reflects a new frenzy for memecoins as many investors seek to capitalize on this speculative trend.
The volatility that characterizes these assets means that the gains can be as dazzling as the corrections that follow. The recent rise of several memecoins, while lucrative for some traders, highlights the risks associated with these assets, whose value is often based on public enthusiasm rather than solid fundamentals. These dynamics suggest that we could be at the beginning of a new memecoin supercycle, but these cryptocurrencies could collapse just as quickly if sustained catalysts are absent. So watch out!
The rise of Shiba Inu and other memecoins offers a fascinating look at the forces at work in the crypto world, where speculation can sometimes trump fundamentals.
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A graduate of Sciences Po Toulouse and holder of the blockchain consultant certification issued by Alyra, I joined the Cointribune adventure in 2019. Convinced of the potential of blockchain to transform many sectors of the economy, I made a commitment to raise awareness and inform the general public about this ever-evolving ecosystem. My goal is to enable everyone to better understand blockchain and take advantage of the opportunities it offers. Every day I try to provide an objective analysis of current events, decipher market trends, convey the latest technological innovations and put into perspective the economic and social problems of this ongoing revolution.
DISCLAIMER OF LIABILITY
The comments and opinions expressed in this article are solely those of the author and should not be considered investment advice. Before making any investment decision, do your own research.