Memecoin Trading Volume and Price Rise Despite Market Correction: An Analysis
CryptoNewsTerminal Staff20 May, 2024
Memecoin Trading Volume and Price Rise Despite Market Correction: An Analysis
Memecoins, often associated with humorous themes and celebrity endorsements, have witnessed a surge in trading volume and price appreciation even amidst the recent cryptocurrency market correction. According to a report from Kaiko, a cryptocurrency market data platform, the combined weekly trading volume of six prominent memecoins—BONK, DOGE, FLOKI, PEPE, SHIB, and WIF—reached its highest level since October 2021 in March this year. The volume remains elevated, surpassing $1 billion in May. The report attributes the renewed interest in memecoins to factors such as the correlation between these assets and GameStop (GME) shares. Furthermore, the growing share of altcoin liquidity, despite the dominance of Bitcoin and Ethereum, has contributed to the surge in memecoin trading. While the market correction has dampened activity in many sectors of the cryptocurrency space, the resilience of memecoins highlights the unique investment dynamics and volatility associated with these assets.
