The market activity that started with Bitcoin (BTC) exceeding the $ 35,000 mark created a new excitement among meme coin investors. These traders often bet on tokens not for their technological value but for their social appeal. The market is witnessing a resurgence in risk-taking sentiment in this particular segment. Here are the details…
Meme coin space is rising
One of the striking indicators of this revival is the rapid rise in Ethereum gas fees, which rose from 9 gwei to over 45 gwei in the same time period. Gwei represents one minute of Ether (ETH), which is equivalent to one billionth of one ETH. According to data from Dune Analytics, average gas fees have increased by a staggering 400% in the last 24 hours. In the context of Ethereum, gas fees refer to the fees users must pay to ensure their transactions are included in the earliest available block determined by network validators. These validators create a competitive environment by prioritizing higher fee transactions.
As a result, fees for popular tokens can reach thousands of dollars, highlighting fierce competition for blockchain resources. Amidst this activity on the Ethereum network, some meme coins, including Pepecoin (PEPE), have seen significant increases, with some gaining as much as 40% in value in the last 24 hours. Additionally, tokens like HarryPotterObamaSonic10Inu traded on the BITCOIN ticker witnessed a 39% increase, while SPX6900 (SPX) witnessed a jump of up to 25%. While these tokens parody Bitcoin and the US stock index S&P500, they collectively have a market cap exceeding $120 million. SHIB and FLOKI rose by 3 percent. DOGE, the ancestor of meme coin projects, grew by 6 percent.
There is a connection between speculative enthusiasm and Bitcoin
However, it is worth noting that historically, speculative enthusiasm in non-serious cryptocurrencies has often heralded significant market tops or bearish reversals in Bitcoin. As of now, Bitcoin is currently trading above $34,000, benefiting from positive developments regarding the proposed spot Bitcoin ETF application in the US. The crypto market remains a dynamic and constantly evolving space. Additionally, meme coins are carving out their own unique space amidst broader market fluctuations. While investors eagerly speculate about the future of these tokens, the broader market continues to carefully monitor the performance of Bitcoin and Ethereum, poised for further developments.
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