Why are memecoins up today?

The recent recovery in cryptocurrency prices has seen the largest market caps memecoins like Dogecoin (DOGE), Shiba Inu (SHIB), and Dogwifhat (WIF) record double-digit gains over the past month. 

First Neiro on Ethereum (NEIRO), a new memecoin deployed on the Ethereum network in late July, rallied the most, gaining over 3,330% over the last 30 days and 63% over the past week. It has added 13% to its value over the last 24 hours. Popcat (POPCAT) followed with a 137% monthly gain, and Mog Coin (MOG) came in third after climbing 102% in the same period.

DOGE, SHIB and Pepe (PEPE) also rose 11.8%, 32.8% and 38% on the monthly time frame, while WIF climbed 63%. 

Memecoin trading volumes explode 

CoinMarketCap shows that the market capitalization of meme tokens has surged by 34.7% over the past four weeks to $48 billion at the time of publication, reflecting renewed investor confidence in the sector.

The daily trading volume increased by 220% from $2.7 billion on Sept. 8 to a monthly high of $8.6 billion on Oct. 2 before retracing to the current $6.8 billion. The increase in trading volume among memecoins indicates the intensity of the demand-side pressure experienced within the sector over the past month.

Corroborating this, data from Dune reveals that memecoin weekly transaction flows for memecoins across all blockchains, including Ethereum, Solana and Tron, have surged collectively by 161.7% from its recent low of roughly $110.5 million during the first week of September to $289.2 million the week ending Oct. 4.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.