The meme coins market cap is currently hovering above $54 billion up by nearly 20% ion the past day. This surge is obvious as roughly seven meme coins now rank amongst the numerous top 100 crypto by market capitalization, marking a serious shift in investor interest towards these once ‘speculative assets.’
A recent market report from QCP Capital has shed light on this phenomenon, disclosing what drives this meme coins surge.
What Is Driving The Meme Coins Surge
In response to QCP Capital, the price appreciation in meme coins might be attributed to a “speculative buying frenzy” through the Asia trading session. Particularly, the firm report suggests that the rallying meme coins is driven by retail FOMO (Fear of Missing Out), indicating a serious shift throughout the dynamics of market participation.
The analysts from QCP Capital also observed an increase in leveraged buying activity, hinting on the “robust” momentum that may potentially pause should Bitcoin surpass its all-time high in dollar terms. The market report read:
Altcoins, especially memecoins, are rallying hard as retail FOMO really kicks in now. Leveraged buyers will likely not relent until we break all-time highs, which could possibly be any time now.
To date, major meme coins harking back to Dogecoin, Shiba Inu, PEPE, and BONK have registered. massive gains, with increases of 27%, 57%, 46%, and 68% respectively in the course of the last 24 hours. These gains reflect the growing investor interest in meme coins and underscore the broader trend of retail investment driving the crypto market.
Dogecoin and Shiba Inu, specifically, have solidified their positions throughout the highest 15 global crypto market cap rankings, demonstrating the many traction meme coins have gained amongst investors.
Retail Participation Fuelling The Crypto Rally
The surge in memecoins is a component of a much bigger trend of increased retail participation throughout the cryptocurrency market. Analysts from JPMorgan have echoed the observations made by QCP Capital, noting that retail traders have played a vital role throughout the cryptocurrency market rally observed throughout February.
The study carried out by the research group at JPMorgan, under the guidance of Managing Director Nikolaos Panigirtzoglou, highlighted the many role of “small-scale investors,” commonly often referred to as ‘mom-and-pop’ traders, in driving distinguished cryptocurrencies like Bitcoin to a two-year high last month.
The researchers noted:
We discover that the retail impulse into crypto rebounded in February, thus likely chargeable for this month’s strong crypto market rally.
Meanwhile, over the past 24 hours, Bitcoin has reached latest heights, trading above $66,000, marking an almost 30% increase over the past week. This upward trajectory will be evident throughout the asset’s market cap, which currently exceeds $1.2 trillion.
BTC price is moving sideways on the 4-hour chart. Source: BTC/USDT on TradingView.com
Featured image from Unsplash, Chart from TradingView
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