Memecoins flourish as crypto market cap reaches $2.5 trillion

While the total market value of the crypto market hovers around $2.5 trillion, memecoins are starting to stand out as the prominent winners of this market movement. Memecoins such as PEPE are currently experiencing a strong increase in value, causing investors to once again be hit with an intense feeling of FOMO (Fear Of Missing Out) when following price developments.

This raises the question of whether this might be an indication that the current bull market is coming to an end. Often such a trend is visible when investors take risks with such coins in the hope of higher profits.

Crypto market reaches new highs, memecoins dominate

The latest data from CoinGecko shows that the total market cap of crypto has passed $2.5 trillion.

Ryan Selkis, CEO of Messari, has noted that the market value of memecoins has reached $40 billion, making this niche surpass other emerging sectors such as decentralized finance (DeFi).

“With a total market capitalization of over $40 billion, memecoins are now more valuable than DeFi, digital personal identification networks (DePIN) and several exchange segments,” Selkis said.

The recent price increases of the major crypto tokens have contributed to this remarkable growth in market capitalization. Memecoins, including PEPE, have experienced an impressive increase in value of around 300% over the past week.

Moreover, Dogecoin (DOGE) has risen 83% during the same period. Significant price increases have been observed even among the major cryptocurrencies. Ethereum saw another spike this week, rising 12.51%, while Bitcoin is up 24.4% over the past seven days.

Speculation about expansion of crypto products by financial superpowers

Speculation is mounting that financial powerhouses, including Bank of America’s Merrill Lynch and Wells Fargo & Co, are considering making Spot Bitcoin ETFs available to their customers. This would make these popular investment instruments accessible to an even wider audience, potentially having a positive impact on the crypto market, including memecoins.

Memecoins often benefit from the gains of larger cryptocurrencies such as Bitcoin and, to a lesser extent, Ethereum. Therefore, the introduction of a Spot Ethereum ETF could also be very beneficial for the market, although it remains to be seen whether it will achieve the same level of success as its Bitcoin counterpart.

While it is known that there is institutional interest in Bitcoin, such evidence for Ethereum has yet to come to light.

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