Top meme coins and tokens continue to perform stronger rallies than the rest of the market. Even at their higher range, some assets send out buy signals. Most meme tokens also engage their communities with calls to hold on to the assets and not sell until “eating another zero”.
Meme coins remain risky, but some believe they are still at an entry point, sending out a buy signal based on blockchain activity. Almost all meme tokens gain new wallets daily and have a significant turnover.
Traders cannot realize all meme coin gains, as most assets have significant slippage potential. Because of significant slippage potential, traders cannot realize all meme coin gains. The main thing keeping meme coins afloat is the dedication of their communities. Calls to hold longer are coming from Pepe (PEPE), Dogwifhat (WIF), and, more recently, GameStop Coin (GME).
Meme Tokens Ride on Greed Sentiment
Despite buy signals and favorable data, meme assets like PEPE continue to move with big price swings. PEPE stepped back by 9.4% to $0.0000148, ending its most recent rally.
However, the overall sentiment for cryptos on averages is in the “greed” region. The indicator is based on traders’ behavior, especially buying the dip. Searches also continue to focus on some of the most active tokens, both established and recent.
Both PEPE and ShibaInu remain within the top 10 most traded assets in Binance in the past 24 hours. The two assets breaking out now compensate for the slowdown in other memes, including WIF and BOME.
PEPE and ShibaInu are symbols of Memes 2.0 and Memes 1.0, respectively. The creators of Memes 1.0 built a community of holders a few years earlier, which took longer.
ShibaInu also benefits from the meme narrative, though it is not a full meme token. Instead, the marketing team has positioned SHIB as a Web3 asset, highlighting its decentralized ecosystem and native blockchain. Those features, however, fade into the background during periods of meme-based hype.
Gas Fees Indicate Shift to Meme Trading
A shift to meme trading also affected Ethereum gas markets. In the past month, the share of gas paid for meme activities increased, expanding to more than 18% of all transactions.
Meme coins or tokens have also spread to other networks, though the main assets still depend on Ethereum.
New launches on the Ethereum blockchain have recently decreased, but existing tokens have seen an increase in trading volumes. The ownership of meme coins has grown since the beginning of 2024. Projects have been focused on creating connected communities and recommending holding onto the coins during periods of volatility.
New meme creation has shifted to Solana, where versions of top memes were added, along with a growing list of native tokens.
Can Meme Coins Turn the Tide?
The meme coin market has a total capitalization of above $61B, even after a recent slide of around 9%. The meme narrative remained prominent for the past couple of weeks, and some coins and tokens reached new peaks.
At the end of May, the market saw volumes fall by around 20% despite outliers and good performers. Meme coins are also awaiting a wider altcoin market, where they may benefit even more. Memes have been chosen “best narrative” for May 2024, displacing previous L2 tokens and perpetual futures trading.
The biggest strength of meme tokens is that they can continue rallying or performing against trends on purely irrational grounds. However, the fate of meme assets is often tied to the performance of Bitcoin (BTC). In the past, DOGE rallies also followed BTC peaks, a trend that the top meme coins may amplify.
Most meme coins also maintain a balanced buying and selling activity. Top gainers in the meme market include ELON, SHIB, PEPE and BONE. Based on a portfolio of 62 tokens, investors have made a net $16M, with some assets barely breaking even. Separate coins will outperform all other assets and go through days of significant hype and gains, creating a sense of FOMO.
Cryptopolitan reporting by Hristina Vasileva
