Memecoins
Why Are Meme Coins Exploding Today?
Meme coins saw a significant recovery today after a lackluster performance the day before. Almost all meme coins like Dogecoin, Shiba Inu, Pepe Coin, WIF, and others recorded over 10% today, indicating the growing confidence of investors towards crypto.
While the general market rally could be a potential reason for the recent rally, other factors could have also contributed to the sector’s gains. Here we explore the potential reason behind the recent rally in the meme sector.
Why are Meme Coins rising today?
FTX Refund Boosts Market Sentiment
THE cryptocurrency The market is showing signs of optimism today, with some analysts pointing to potential cash injections as a key factor. Speculation is rife that FTX, the bankrupt exchange, could hand out a whopping $16 billion to its former customers.
At the same time, experts believe that a significant portion of this money could be reinvested into cryptocurrencies, fueling growth. This optimism appears to have bolstered market optimism while boosting the Meme parts
Prices are also higher today.
It’s worth noting that the reinvestment of these crypto-savvy individuals could create substantial buying pressure, which would drive prices higher. While the exact impact remains to be seen, even a partial return of these funds could be a major boost for the cryptocurrency market, let alone meme coins.
Bitcoin ETF Influx and Ether ETF Anticipation Boost Meme Coin Performance
THE Bitcoin Spot ETF in the United States On July 6, institutional investors saw an inflow of $143.1 million, indicating that institutions have likely regained confidence in the cryptocurrency. This has provided a solid boost to the broader cryptocurrency market, as well as meme coins.
On the other hand, the anticipation of the approval of the Ethereum ETF by the US SEC in mid-July has also boosted market confidence. For context, the market is betting on a rally in altcoins as well as renewed confidence in meme coins, following the Ethereum Spot ETF in the United States
approval.
Read also : Dogecoin Regains $0.1 Support Despite Whales Losing $500 Million DOGE
VanEck Shares Cryptocurrency Post on Solana
VanEck was the first company in the United States to apply for a Solana Exchange Traded Fund (ETF) with the US SEC. This decision has boosted confidence in the cryptocurrency market, driving up the price of Solana as well as Solana-based meme coins.
However, in a recent post on X, VanEck shared a cryptic message that hints that the company has added Solana to its portfolio. For context, in a recent post on X, VanEck stated “I have Sol, but I’m not a soldier.”
Meme Coin Rally
The overall meme market cap rose nearly 13% today to $41.77 billion, with nearly all of the major players in the sector up. For example, Dogecoin Price climbed more than 10% today, with Shiba Inu Price up about 15%. At the same time, Pepe Coin Price rose about 11% while the price of dogwifhat jumped 17%.
Meanwhile, the recent Cryptocurrency Market Crash The price surge is mainly due to the immense selling pressure exerted by the German and US governments. As a reminder, governments have recently dumped massive amounts of Bitcoin on exchanges, which has raised concerns in the cryptocurrency market, also impacting the performance of meme coins.
Additionally, the panic in the market was further fueled by Mt. Gox repaying creditors in BTC and BCH. However, analysts suggested that the government sell BTC should have very little impact on the cryptocurrency market.
Ki Yong Ju, founder of CryptoQuant, downplays fears of a government-led bitcoin market collapse. He points out that despite $224 billion invested in bitcoin since 2023, sales of government-seized bitcoins only amount to about $9 billion.
This translates to only 4% of the total value of Bitcoin realized since 2023. Ju advises investors not to let FUD (fear, uncertainty, doubt) The surrounding government sales influence their business decisions. This comment may have also contributed to the meme coin sector’s gains today.
Read also : XRP Flashes Buy Signal at $0.50 as Whales and Notable Investors Buy the Dip