Memecoins are humorous and tongue-in-cheek cryptocurrencies that often arise for entertainment and humor purposes and are often based on popular internet phenomena. Such cryptocurrencies take their names and sometimes logos from famous internet memes and often have no serious technological basis or intended use.
Cryptocurrencies that are often animal-themed or refer to internet phenomena, such as Dogecoin, Shiba Inu and ApeCoin, are called memecoins. Dogecoin was inspired by a particularly popular internet meme of a Shiba Inu dog named “Doge” and was initially launched as a joke. However, over time it has developed a serious community and use case.
The popularity of Memecoins is often driven by a great deal of interest and support in social media and internet communities. People are interested in the humor and entertainment value of owning and transacting with such currencies.
However, an important caveat is necessary: Memecoins can often be highly speculative and subject to sudden price fluctuations. Additionally, some memecoin projects may be fraudulent or created with fraudulent intent, so it is important to do good research and be careful before investing.
Memecoin craze emerges
The cryptocurrency market is facing a notable trend of three popular memecoins such as Dogecoin (DOGE), Shiba Inu (SHIB), and ApeCoin (APE) despite Bitcoin's recent price drop. According to leading crypto analytics platform Santiment, the market caps of these memecoin projects are increasing and their price movements differ significantly from Bitcoin. As social media interest and trading volumes increase, these memecoins are attracting significant interest among investors and traders.
Santiment’s latest report reveals the growing popularity of memecoins, with Dogecoin, Shiba Inu and ApeCoin coming onto the scene. The analytics firm points out that despite the recent bear trend in the overall cryptocurrency market, these assets have experienced significant market value growth.
Notably, ApeCoin (APE) has a tight connection with Bored Ape Yacht Club’s NFT collection. This relationship significantly contributes to ApeCoin's unique appeal and increases its popularity and market performance.
Social media volume indicator and its role
The social media turmoil around Dogecoin, Shiba Inu and ApeCoin is a key indicator of their current trends. Santiment keeps a close eye on the social media volume indicator, which tracks the frequency of mentions of certain crypto terms across various social media platforms, especially Telegram and Reddit. This indicator shows that growing interest and excitement for the three memecoins is growing among the community.
The analytics firm notes that high social media volume increases generally signal market tops for such assets. As excitement around Dogecoin increases, investors need to be careful and cautious in their investment decisions.
Dogecoin's rise and transaction volume increase
Santiment's report highlights the recent rally in Dogecoin's price, showing that trading volume has reached a 16-week peak. The increased trading activity demonstrates renewed interest and investment in this iconic dog-themed cryptocurrency. With positive momentum, Dogecoin is becoming an attractive option for traders looking for short-term gains.
Litecoin and Ethereum gaining traction
Besides Memecoins, Santiment's attention is focused on Litecoin (LTC) and Ethereum (ETH). Litecoin's peer-to-peer payment network is gaining increasing attention as we approach the upcoming halving event on August 2. Similarly, leading smart contract platform Ethereum is experiencing a surge in transaction volume, making it an asset worth tracking.
Positive signals for altcoins
Santiment's analysis extends beyond memecoins and mainstream cryptocurrencies. The company's market capitalization to realized value (MVRV) evaluation reveals positive signals for many altcoins such as Quickswap (QUICK). Assets such as QUICK, the OMG Network (OMG), a decentralized exchange (DEX) and Ethereum's layer 2 scaling solution, are among those still attracting significant interest despite recent losses. Likewise, the open-source blockchain network Radicle (RAD) also appears to be an attractive investment option.
Conclusion
As the cryptocurrency market continues to evolve, the rise in popularity of memecoins, especially Dogecoin, Shiba Inu, and ApeCoin, is attracting the attention of investors and enthusiasts around the world. Santiment's information on social media turmoil, trading volume and MVRV rates offers valuable tips for investors looking to move in the dynamic crypto market. However, since the crypto market is still highly volatile and unpredictable, it is important to approach these investments carefully and manage risk.
