The altcoin sector has been on a tear since the Federal Reserve’s dovish pivot in mid-September, signaling a potential early stage of the long-awaited alt season. However, a familiar trend has emerged: the dominance of memecoins.
Glassnode’s founders have observed that memecoins consistently lead the charge during the early phases of alt seasons. This time around, dog-themed tokens like WIF, Shiba Inu (SHIB), and Pepe (PEPE) have been particularly prominent.
As of September 27, eight of the top ten memecoins, including SHIB, WIF, and MOG, had experienced double-digit gains ranging from 25% to 50% over the past 30 days. Shiba Inu, in particular, has seen a remarkable 40% surge during this week’s rally.
While SHIB’s momentum has cooled slightly near the 200-day Moving Average, and the Relative Strength Index (RSI) indicates overbought conditions, memecoins continue to attract significant speculative interest compared to other sectors.
Coinglass data reveals that memecoins currently hold the top position in Open Interest (OI) over the past 24 hours, with a market share of 12%. This is roughly double the interest in the second-ranked sector, Gaming, at 6.8%.
Also Read: PEPE Coin Soars – 60-Day Correlation With Ethereum Hits 0.92, Igniting Investor Interest
Memecoins also rank third in terms of trading volume during the same period, highlighting strong liquidity and speculative activity. This surge in speculative fervor could further solidify memecoins’ market dominance in the third quarter of 2024, echoing their impressive performance in the first half of the year, which outpaced even Bitcoin.
Year-to-date, the memecoin sector has delivered a staggering 1160% return, making it the top-performing segment. As the altcoin season unfolds, memecoins appear poised to play a pivotal role, capturing the attention of investors and speculators alike.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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