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Memecoins ‘Rally Hard’ as Retail-Based Market Participation Increases: QCP Capital

Memecoin market capitalization has increased by more than 17% in the last 24 hours, significantly outperforming the rest of the cryptocurrency market, which has gained more than 4% over the same period.

According to CoinGecko data, Mimcoin’s current market capitalization is $53.3 billion.

A recent QCP Capital Markets report suggested that the ‘speculative buying frenzy’ that emerged during Monday’s Asian trading session could spur prices higher. “Altcoins, especially memecoins, are now rallying hard as retail FOMO really sets in,” the report said.

QCP Capital analysts noted an increase in leverage buyer activity over the past 24 hours. However, they added that recent lively market movements could fade if Bitcoin breaks its all-time high in dollar terms.

Crypto Rally Driven by ‘Retail Impulse’

The suggestion that retail participants may be driving the recent rise in memecoins is consistent with a JP Morgan note from last week that pointed to increased market activity from this group.

According to JPMorgan analysts, the recent surge in cryptocurrency prices appears to have been fueled by impulsive decisions by individual traders rather than institutional investors or market fundamentals.

“Like stocks, retail demand for cryptocurrencies appears to have rebounded in February, driving a strong rally in crypto markets this month,” JPMorgan analysts led by Nikolaos Panigirtzoglou wrote on Thursday.

Memecoin market capitalization increases

In the last 24 hours, the following major memecoins Dogecoin viceroy

+17.12%
Bonk, Pepe and Shiba Inus increased by 14%, 28%, 31%, and 19%, respectively. In comparison, according to The Block price page, major cryptocurrencies such as Ethereum rose by about 2.5% during the same period.

Currently, there are 7 memecoins in the top 100 cryptocurrency tokens by market capitalization. According to The Block’s pricing page, Dogecoin ranked 10th, Shiba Inu ranked 12th, Pepe ranked 42nd, Bonk ranked 51st, Dogwifhat ranked 69th, Floki ranked 76th, and Apecoin ranked 83rd.

According to Coingecko data, Bitcoin’s dominance in the overall cryptocurrency market is currently 50.2%, while Ethereum’s dominance is 16.5%.


Disclaimer: The Block is an independent media outlet delivering news, research and data. As of November 2023, Foresight Ventures is a majority investor in The Block. Foresight Ventures invests in other companies in the cryptocurrency space. Cryptocurrency exchange Bitget is an anchor LP of Foresight Ventures. The Block continues to operate independently to provide objective, impactful and timely information about the cryptocurrency industry. Below are our current financial disclosures.

© 2023 The Block. All rights reserved. This article is provided for informational purposes only. It is not provided or intended to be used as legal, tax, investment, financial or other advice.

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