The meme coin frenzy could have cooled off a bit as bitcoin has misplaced some upward momentum. Nevertheless, markets for high meme tokens are nonetheless extra liquid than they had been earlier this 12 months, indicating that these supposedly non-serious cryptocurrencies, usually criticized for missing utility, are right here to remain.
In response to Kaiko Analysis, meme tokens have been resilient through the current market correction, persevering with to carry out strongly regardless of traditionally being underperformers throughout downturns. 12 months-to-date (YTD) returns for these tokens vary from 80% to 1800%, with commerce volumes remaining robust.
Kaiko Analysis experiences that the weekly commerce quantity for meme tokens surged by greater than 200% YTD, reaching round $11 billion. This may be attributed to the tokens’ accessibility and their capability to adapt to market tendencies, which has attracted group curiosity.
“Meme tokens have proven an surprising resilience within the face of market corrections, sustaining robust commerce volumes and efficiency,” mentioned an analyst from Kaiko Analysis. “Their recognition is basically pushed by their accessibility and the robust group curiosity they generate.”
Nevertheless, meme cash are inclined to have larger leverage in comparison with most altcoins and are thus extra influenced by speculative urge for food.
Curiously, the correlation between meme tokens and different retail-driven speculative property, comparable to meme shares, has been comparatively weak and extremely risky. As an illustration, the 60-day rolling correlation between the most important meme token, (DOGE), and the online game retailer GameStop (NYSE:) has largely remained under 0.3 over the previous 12 months.
Over the previous week, meme shares acquired an surprising enhance, with GME and AMC Leisure (NYSE:) seeing a surge on Could 13-14. This triggered the correlation between DOGE and GME to succeed in its highest degree in over a 12 months.
“Meme shares noticed a notable uptick final week, which additionally affected the correlation between Dogecoin and GameStop,” Kaiko Analysis added. “This spike in correlation highlights the interconnected nature of retail-driven speculative property.”
