The memecoin sector has experienced a significant uptick of 8.1% in the past 24 hours. The market cap has surged and reached approximately $66.8 billion for this particular sector as per CoinGecko.
The rebound is finally here after a period of decline, where most of these coins faced a substantial losses due to market volatility and skepticism surrounding their long-term viability.
The Reason for Resurgence
There are several factors that could have led to this surge but the main reason is President Trump’s recent statement regarding major cryptocurrencies like Bitcoin, Ethereum, XRP, Solana, and Cardano being included in the U.S. Crypto Strategic Reserve.
While the memecoin sector was not directly included in the reserve but this announcement indirectly benefited the sector. Historically, positive sentiment surrounding major cryptocurrencies usually have a ripple effect on this sector also.
As per CoinGecko, below is the list of memecoins doing well within the said sector. Surprisingly, Solana based memecoins are also making a comeback with a surge of 11.3% in the last 24 hours.
With this renewed confidence in the crypto market following Trump’s statement, investors are increasingly exploring high-risk, high-reward opportunities which is driving up the prices.
The Downfall of Memecoins
In the past month, the $LIBRA scandal, where Argentina’s President Javier Milei promoted the token as a tool to fund small businesses and boost economic growth but later on the developers withdrew $80-$100 million in what appeared to be a coordinated rug pull and the collapse of $MELANIA token where the insiders sold their $MELANIA tokens in large quantity, which led its price to plummet. All of this led to an increased scrutiny on the memecoin ecosystem, specially on those built on Solana.
The resurgence of memecoins indicate the role of community sentimnet and external influences that affect the cryptocurrency market. While established cryptocurrencies like Bitcoin and Ethereum are driven by technology and real-world applications, memecoin thrive on hype and social media trends.
The current surge highlights the potential for significant retruns, but also the highlights the existing risks involved within the sector.
Also Read: Coinbase Co-Founder: Bitcoin is the Best Choice for Strategic Reserves
