- Meme tokens continue to be strong in the market, with weekly volume of $11 billion.
According to a study by research firm Kaiko, meme tokens are continuing to rank among the best of the year despite defying the usual behavior of market downturns. These tokens have returned between 80% and 1,800% year to date, even with the recent market drop.
Furthermore, the number of meme coins traded is still substantial, having increased by more than 200% year to date and reaching almost $11 billion every week.
The paper emphasizes that the ongoing interest in meme tokens could be attributed to their accessibility and flexibility to adjust to market developments, both of which continue to generate significant community participation.
However, it is important to recognize that meme currencies, which are frequently driven by speculative trading, have a higher leverage than most altcoins.
An intriguing twist is that there has been erratic and unstable correlation seen between meme coins and other speculative retail assets like meme stocks. For instance, throughout the previous year, the 60-day rolling correlation between DOGE and GameStop (GME) has largely remained below 0.3.
The connection between DOGE and GME increased last week to its greatest level in more than a year as a result of the surprise advances made by meme stocks like GME and AMC Entertainment.
The reappearance of RoaringKitty, one of the main players behind the GME pump observed in late 2020, is connected to the abrupt jump in the prices of GME and AMC shares.
The majority of cryptocurrency liquidity is still held by Bitcoin and Ethereum, which are split among exchanges and assets. The average daily 1% market depth of Bitcoin in 2024 was over $270 million, more than 10 times the liquidity of the majority of the leading altcoins. Next most liquid asset was Ethereum, with an average market depth of $190 million.
Still, the terrain is changing. In the last two years, altcoin liquidity has increased relative to the daily market depth of Bitcoin. This adjustment corresponds with Ethereum’s liquidity falling in comparison to Bitcoin, which fell from 83% in 2022 to 72% in 2024.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
