Key Insights:
- The recent passage of the GENIUS Act has provided regulatory clarity for digital assets.
- Bitcoin has been stalling, and investors are rotating their capital into other assets, including memecoins.
- Solana-based memecoins like Bonk, Floki, and Pudgy Penguins are leading the charge with record token launches and increased trading volumes.
The crypto market is currently in an explosive new phase lately, and the memecoins are back in the spotlight.
The recent passage of the GENIUS Act through Congress is giving the entire crypto space a regulatory boost. This move has also pushed the total market cap over $4 trillion for the first time.
As of writing, the memecoin space now commands a staggering $82 billion in market value. Here’s why the memecoins could be back in action after months in limbo.
Regulatory Clarity And Market Rotation
The GENIUS Act’s approval in the US house of representatives is a milestone for crypto laws. This is because it offers some long-awaited regulatory clarity to the stablecoin market, and digital assets as a whole.
While Bitcoin initially surged to $120,000 on the news, it has since cooled, and is hovering near $116,000. This stall in BTC price has created a rotation of capital into altcoins, especially meme coins.
Ethereum is also showing signs of strength, after rising 6.64% in the past 24 hours compared to Bitcoin’s modest 1.4%.
Memecoin Market Sees $27B Growth in July Alone
Memecoins have exploded back into relevance. Since the start of July, the sector has added $27 billion in value, and has climbed from $55 billion to over $82 billion.
This revival has been fueled by Solana-based platforms like LetsBonk and tokens like Bonk, Floki and Pudgy Penguins (PENGU). All of these have posted massive weekly gains, with BONK in particular seeing up to 72%.
Trading volumes are also showing this hype. For example, the sector recorded over $18 billion in 24-hour volume on Thursday alone, which is its highest in a month.
Blockchain analytics also show that a record 19,900 meme tokens were launched on LetsBonk.fun on July 16 alone, with general Solana launchpads seeing active user numbers spike by 60%.
Three Signs Meme Season is Heating Up Again
The market is already showing clear signals that meme coins are ready for another breakout cycle. For example, CoinGecko data shows that meme coins have outpaced all other sectors over the past month, with a 31% average gain.
In addition, there is an ongoing spike in token creation numbers again, with nearly 20,000 new meme tokens launched on LetsBonk.fun in a single day. If history is any guide, these are all early signs that a meme coin supercycle could be approaching.
Overall with crypto regulation taking shape and Ethereum surging, the second half of the year could turn out to be massive for the crypto market.
Memecoin Comeback This Year?
So far, the crypto market cap has cooled off to around $79 billion at the time of writing. However, this market sector currently has a very impressive $18 billion in trading volumes, according to CoinMarketCap.
Bonk and PENGU are leading the entire market charge with more than 50% in weekly gains. Heavyweights like Dogecoin and Shiba Inu have registered 24% and 12% in weekly gains, respectively.
Official Trump and DogWifHat on the other hand, are trailing the rest of the top-10 assets on the market with less than 10% price increases over the last week. However, the 10% increase in the memecoin sector’s market cap in under a week shows that a memecoin supercycle is currently back in action.
