Home Markets Memecoins Surge as Ethereum Optimism Infects Crypto Market

Memecoins Surge as Ethereum Optimism Infects Crypto Market

Memecoins Surge as Ethereum Optimism Infects Crypto Market

Dog-themed cryptocurrencies surged on Monday amid broader retail investor enthusiasm in the market, especially as Ethereum works on its highly anticipated software upgrade.

Dogecoin is up around 14% in the past five days, while Shiba Inu has gained nearly 40%, according to pricing data compiled by Bloomberg.

Meme tokens hold onto gains even as Bitcoin hover around $25,000 and Ether hovers around $2,000 amid optimism around its upgrade, known as Merge, now expected around the 15th september.

“Dogecoin and Shiba Inu both broke out over the weekend, clear evidence that the retail investor is back,” Hayden Hughes, managing director of social trading platform Alpha Impact said in a post on Monday, noting that there is optimism that both pieces will win. like Ethereum because they also need to be upgraded.

The crypto market has shown signs of recovery with its total market capitalization now around $1.2 trillion, after dropping to around $875 billion as of June 19, according to data from CoinGecko.

The weaker-than-expected inflation prints in the US last week boosted hopes that the Federal Reserve may be able to slow its pace of rate hikes, helping riskier assets like crypto.

Ethereum was also supported after a final stage of testing before the Merge upgrade, which co-founder Vitalik Buterin believes to arrive at around September 15.

Still, not everyone is quite on board with the memecoin trend yet.

“These coins don’t have the depth of the market at times like Ether or Bitcoin, so when a small demand comes in, they hit a pocket of liquidity and soar, attracting more speculators,” said Cici Lu, CEO of consulting firm Venn Link Partners, in a message on Monday.

Alpha Impact’s Hughes also warned against the rally.

“Alpha Impact traders have been on the sidelines, waiting to see if this trend is picked up by institutional investors who tend to trade during the week,” Hughes said.

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