Following the major dip that the crypto market experienced at the start of the week, many investors are concerned about the state of the modern crypto market. But despite negative sentiment among both analysts and traders, an unlikely hero rose up to instill hope in traders. Memcoins based on the Solana chain have seen a rise in market cap over the past day as volatility for the market starts to slow down.
While meme coins have long been seen as a joke investment, the type that most serious investors don’t take seriously, this incident shows that they are still a major force in the market.
Meme coins Throughout the Market. See Rise
Trading volumes reached new highs on Monday, as a sudden drop in the cap for various major cryptocurrencies brought the market down. Many still believe that the crypto market has a tendency to bounce back from serious blows, especially with platforms like Finance Phantom offering an easier way to trade. Instead, traders were more concerned about the when. When will the market begin to stabilize? Surprisingly, volatility started to decline, and many tokens started to see positive sentiment from traders. Some of these crypto were meme coins, one of the most overlooked players in the market.
Data collected from Coingecko indicates that the market capitalization for all meme coins based on the Solana blockchain has risen to $7.3 billion. This is an amazing increase of over 35% in less than 24 hours. Many traders also noticed that cat-themed tokens were also rising across the market, with data showing that the entire segment saw its capitalization increase by 41%.
While memcoins seeing gains might not be surprising for many analysts, what was surprising was the sheer scale of it. Nearly all coins in this category saw double-digit gains, with examples including Dogwifhat, Popcat, and Michi.
Various Trade Opportunities Open Throughout the Market
One of the more unique movements that have started in the crypto space is Politifi. This specific movement sees token manufacturers start projects with political leanings, mostly on the ironic side. The total cap for this segment is just shy of $600 million, thanks to an 18% rise that happened over the past day. Some of the major players there included Elon Trump, which saw its price rise by 38%, and MAGATrump, which saw an increase of 51%.
Analysts have been taking notice of this unique movement in the crypto space, especially following events on Tuesday. On this day, Kamala Harris announced that Tim Walz would be her running mate for the current campaign, and soon after the announcement, a coin was up on the market. In a single day, the market cap for the coin reached a high of $1 million, even if it was quick to plummet back down to just $254,000. Meme tokens are introducing a number of unique trading opportunities for both veteran and casual investors.
Rising Confidence in the Market
While many traders are still concerned about the current state of the market, the rising trend in meme coins shows a general trend of rising confidence. As the US economy continues to show more signs of recession, the Federal Reserve is being pressured to increase interest rates. This is especially concerning following the weaker jobs report that came out last week.
However, making a decision on the interest rates could encourage traders to make riskier trades and better diversify their portfolios. This Is all part of a general rise in confidence for the crypto market. As more casual traders start getting access to better trading tools like the Finance Phantom Bot, they can better diversify their portfolios while reducing their risk.