The meme coin craze might have cooled down a bit as Bitcoin misplaced a few of its momentum. Nevertheless, the markets for the most effective meme tokens are nonetheless extra liquid than they had been earlier this 12 months, suggesting that these supposedly frivolous cryptocurrencies, which are sometimes criticized for his or her lack of utility, are right here to remain.
In accordance with Kaiko Analysis, meme tokens have been resilient through the current market correction and have continued to carry out strongly regardless of being traditionally weaker throughout downturns. 12 months-to-date (YTD) returns for these tokens vary from 80% to 1800%, with buying and selling volumes remaining robust.
Kaiko Analysis studies that the weekly buying and selling quantity of meme tokens has elevated by greater than 200% for the reason that starting of the 12 months, reaching roughly $11 billion. This may be attributed to the provision of tokens and their potential to adapt to market traits, which has generated neighborhood curiosity.
“Meme tokens have proven surprising resilience to market corrections, sustaining robust buying and selling volumes and efficiency,” stated an analyst at Kaiko Analysis. “Their recognition is basically because of their affordability and the robust neighborhood curiosity they generate.”
Nevertheless, meme cash are typically extra leveraged in comparison with most altcoins and are thus extra affected by speculative urge for food.
Apparently, the correlation between meme tokens and different retail pushed speculative belongings resembling meme shares has been comparatively weak and extremely unstable. For instance, the 60-day rolling correlation between the most important meme token ( DOGE ) and online game retailer GameStop ( NYSE: ) has largely stayed under 0.3 over the previous 12 months.
Over the previous week, meme shares have seen an surprising surge, with GME and AMC Leisure (NYSE: ) posting sharp beneficial properties on Could 13-14. This precipitated the correlation between DOGE and GME to achieve its highest stage in over a 12 months.
“Meme shares noticed a major rally final week, which additionally affected the correlation between Dogecoin and GameStop,” Kaiko Analysis added. “This enhance in correlation highlights the interconnected nature of retail-driven speculative belongings.”
