Memecoins have emerged as one of the best-performing sectors in crypto over the past year, driven by vibrant online communities and heightened market attention.
Bitcoin (BTC) neared $64,000 during early Monday trading in Asia, ahead of a key week of U.S. economic data releases, including the Federal Reserve’s FOMC minutes and important August growth figures. BTC rose 3%, sparking a market-wide rally, with major tokens like ether (ETH) and dogecoin (DOGE) gaining as much as 4%. A liquid fund tracking top cryptocurrencies added 3.26%, while frog-themed memecoin Pepe (PEPE) soared 14%.
This week, the Bureau of Labor Statistics (BLS) will release crucial economic data, including September’s unadjusted Consumer Price Index (CPI) and Producer Price Index (PPI), as well as the latest jobless claims for the week ending October 5.
Asian markets were also lifted on Monday, with Hong Kong’s tech-heavy Hang Seng index jumping 3% and Korea’s KOSPI adding 1%. The People’s Bank of China (PBOC) has rolled out several stimulus measures in recent weeks, improving regional market sentiment. Additional measures to stimulate China’s economy are expected to be announced at a press conference on Tuesday morning, local time.
Among mid-cap tokens, Bittensor’s TAO led the way with a 14% surge, driven by increased social interest and growth in artificial intelligence-related tokens. This trend has boosted the overall category by 7.5%, with other AI tokens like NEAR and Internet Computer (ICP) also posting gains.
Memecoins rallied over the weekend as growing social sentiment and risk appetite among crypto traders fueled discussions of a “memecoin supercycle.” This theory suggests that memecoins may lead the next crypto bull market, with the topic trending on social platform X. Solana-based Popcat (POPCAT) and Ethereum-based Mog (MOG) surged more than 12% in the past 24 hours, while BNB Chain-based Simon’s Cat (CAT) rose 10%. Smaller tokens like GIGA, SPX6900 (a parody of the S&P500), and Fwog soared over 20%.
Interestingly, cat-themed memecoins have outperformed their dog-themed counterparts, becoming the preferred choice for risk-tolerant traders in the memecoin space.
This surge in memecoins comes amid low volatility in more established crypto sectors, such as layer-2 solutions and storage tokens, as well as rising skepticism around venture capital-backed tokens, which are increasingly seen as overpriced and risky for retail investors.
One notable market participant, known as Kaiwen0x, who authored an essay on the “memecoin supercycle,” remarked that they would turn bearish on memecoins if Donald Trump wins the 2024 U.S. election, as regulatory clarity could shift capital back toward utility tokens.
