• Meme coins are gaining popularity due to their brand power and potential for 10x gains or more.
• The market cap of meme coins has risen above $22 billion, with top sector coins like Shiba Inu (SHIB), Baby Doge Coin (BabyDoge), Bone ShibaSwap (BONE) and Tamadoge (TAMA) leading the charge.
• Trading volumes are also up 33%, indicating a firm foundation for sustained price growth.
What is Behind the Meme Coin Redo?
The attraction of meme coins is centered on their brand power. As the rekindling of interest in crypto gathers pace it is not surprising that this sector should start to attract buyers.However, the first iteration of meme coins, which was very much built around the joke status of Dogecoin and the pulling power of Elon Musk, has moved on. These days investors are taking notice that a small band of meme coins are starting to build real utility into their protocols, thereby differentiating themselves from the pack. Market visibility that can crossover into the mainstream is a powerful value proposition – providing it is ultimately be based on leveraging blockchain technology to deliver useful products with cash flow.
Meme Coin Prices On A Roll
Meme coin prices have seen broad-based appreciation recently, pushing their collective market cap over $22 billion. Top sector coins such as Shiba Inu (SHIB), Baby Doge Coin (BabyDoge), Bone ShibaSwap (BONE) and Tamadoge (TAMA) have seen week gains ranging from 20%-82%. Notably, even Dogecoin has gained 30% in January alone despite being a relative laggard in recent weeks compared to its peers.
Bitcoin Leading The Market Higher
Bitcoin has undoubtedly led the market higher this year, in a revival that has taken some by surprise. But as investor interest begins to focus on better risk-reward opportunities lower down the market cap rankings, meme coin prices have started to rise as well, offering potential 10x returns or more over short-to-medium term periods for those willing to take on riskier investments than Bitcoin itself offers .
Rising Trading Volume Underpinning Price Strength
The rise in trading volume can be seen as an indication that there is strong support behind meme coin prices at present – according to Coinmarketcap 24 hour trading volume has risen 33% while CoinGecko estimates 24 hour trading volume at $3.1 billion – both signs that suggest sustained price growth may be likely going forward if current levels hold steady or increase further still..
Conclusion
The surge in meme coin prices provides an attractive opportunity for those seeking out altcoins with greater reward potential than what Bitcoin offers currently; however caution should still be practiced when investing due to high levels of volatility inherent within this asset class as well as regulatory uncertainty surrounding its future use cases .