Altcoin Frenzy: Memecoins Dominate as Market Surges Towards $640 Billion Cap

Altcoin Frenzy: Memecoins Dominate as Market Surges Towards $640 Billion Cap

Crypto News – Altcoin Market Approaches $640 Billion as Memecoins Take Center Stage

The collective value of cryptocurrencies, excluding Bitcoin (BTC) and Ethereum (ETH), has surged by an impressive 50% since January 22, marking a robust period for alternative coins, according to findings from the “Bitfinex Alpha 94” report. The market capitalization index now stands at approximately $640 billion, a significant uptick from its low point of around $450 billion during the bear market. Despite concerns about potential overheating, the altcoin sector has yet to reach the heights seen in April 2022.

While BTC has come close to its all-time high, trailing by only 2.2% at the time of reporting, the altcoin market remains notably lower, approximately 75% below its previous record of $1.3 trillion. Notably, the altcoin market is characterized by its rotational dynamics, with capital flowing between various sectors. Presently, meme coins, particularly dog coins, alongside AI-related projects, are experiencing heightened accumulation and futures speculation.

On platforms such as Binance and Bybit, dog coins, including DOGE, WIF, PEPE, and BONK, accounted for over one-third of last week’s futures trading volume. Notably, the latter two, which are not widely available for spot trading on centralized exchanges, have witnessed significant trading activity. The term “Memecoin March Madness” has emerged to describe the fervor surrounding these assets. Additionally, the CoinGecko Meme Index has surged by 131% in the past week, now constituting more than 7% of the total crypto market capitalization, excluding BTC and Ether.

The steady incline in stablecoin supply, an indicator of crypto market demand, since the beginning of the year reflects the growing interest in altcoins and other crypto assets. Despite sectors like decentralized finance (DeFi) and gaming experiencing a decline in trading volume, dog coins and meme coins continue to ascend, alongside the futures open interest for cryptocurrencies not listed on major exchanges.

Despite the potential for a leverage flush in these sectors, the momentum is anticipated to endure. For instance, DOGE has recorded a 107% gain over the past 30 days, recently surpassing its previous bear market high. This is comparatively modest when compared to the 195% gain for SHIB, 225% for BONK, and an astonishing 548% for WIF.