The meme coin fever is once again spreading in the cryptocurrency market, with PepeCoin (PEPE) and Dogwifhat (WIF) leading the pack.
According to CoinMarketCap data, in the last 24 hours, PEPE has gained over 21%, while WIF has seen an impressive 44% increase. Even Dogecoin (DOGE) and Shiba Inu (SHIB), the two largest meme coins in terms of market capitalization, have experienced a surge, albeit not as strong as their smaller counterparts.
The main meme coin, DOGE, rose by over 7% in the last day, while SHIB gained only 2%. The rally of meme coins like PEPE and WIF indicates a broader trend in the cryptocurrency market, where speculative frenzy for these tokens is reigniting.
This resurgence of meme coins is marked by average gains of 13% in just one day.
Bitcoin Stays Near ATH, but Now Retraces
The surge of meme coins comes at a time when Bitcoin is undergoing a sudden correction after hovering near its All-Time High (ATH) for over a week. Needless to say, this adds another level of excitement to the cryptocurrency market.
After reaching a new ATH of $73,750 yesterday, Thursday, March 14th, the main cryptocurrency has dropped by about 10% to around $66,700 at the time of writing this article.
Bitcoin has also had a wild ride since the beginning of the year, and this sudden retracement was already anticipated by many. Despite the sudden drop, Bitcoin has held up well, maintaining a monthly gain of 30% and is now showing signs of bouncing back up again.
Furthermore, the leading cryptocurrency has surged by an incredible 170% in the last year.
It's important to remember that Bitcoin's rally has been largely supported by spot Bitcoin ETFs, which saw an incredible net inflow of $1.05 billion on March 12th, according to SoSoValue data.
This milestone sets a new record for the highest net inflow in a single day since the start of trading in spot Bitcoin ETFs, representing a 56% increase from the net inflow of $673 million recorded on February 28th.
In fact, spot Bitcoin ETFs have seen the most successful launch in ETF history. These products have accumulated over 30,000 BTC just in the previous week and currently hold nearly $30 billion.
If the trend of institutional inflows into Bitcoin continues, it could create a new phenomenon where demand for Bitcoin surpasses the available supply, effectively creating a liquidity crisis for Bitcoin ETFs.
Solana Emerges as Preferred Blockchain for Meme Tokens
The Solana blockchain, known for its low transaction costs, has recently emerged as a preferred venue for meme token exchanges.
The platform has seen a wave of new meme coins featuring caricatures of public figures like Joe Biden and Donald Trump.
The viral story of a trader turning $260 into nearly half a million dollars with "Jeo Boden" sparked the creation of coins like "Doland Tremp" and "Olen Mosk."
According to DeFiLlama, decentralized exchanges (DEXs) based on Solana recorded trading volumes exceeding $2 billion on March 5th, with Solana's share in DEX volumes steadily increasing from less than 2% six months ago to around 15% today.
According to the Solana Foundation, the Solana ecosystem now boasts over 2,500 monthly active developers.
The Foundation has emphasized that the network has maintained a steady range of 2,500-3,000 monthly active developers over the past year, demonstrating the ecosystem's ability to attract and retain talent.