TL;DR
- Bitcoin and Ether surge, but memecoins like Pepe Coin and Floki Inu steal the show with weekly gains of 92% and 76%.
- Memecoin popularity potentially boosted by US SEC’s possible BTC ETF approval and events like PEPE token burns.
- Despite potential profits, memecoins carry inherent risks due to lack of substantial use cases.
Memecoins in the Spotlight
The cryptocurrency market continues to flash green, with most digital assets sitting at price levels unseen in the past couple of weeks. Bitcoin (BTC) has surged by over 22% in the last seven days, while Ether (ETH) has soared by 16.5% (per CoinGecko’s data).
However, it is not the largest cryptocurrencies by market capitalization that made the headlines today (October 26). Popular memecoins such as Shiba Inu (SHIB) and Dogecoin (DOGE) have jumped by respectively 8% and 7% in the past 24 hours.
Pepe Coin (PEPE) and Floki Inu (FLOKI) have charted even more substantial gains. The former has risen by almost 30% since yesterday (October 25) and a staggering 92% on a weekly basis. The Elon Musk-inspired cryptocurrency FLOKI has spiked 26% in the past 24 hours and 76% in the last seven days.
One reason behind the revival of memecoins could be the overall enthusiasm in the cryptocurrency industry infused by the rumors that the US SEC might soon approve BlackRock’s application to launch a spot BTC ETF in the States.
Earlier this week, the team behind PEPE announced that almost 7 trillion tokens (equaling $6 million at that time) were burned. Such a move is usually seen as bullish since it reduces the supply of a certain asset, potentially making it more valuable.
What are Memecoins’ Risks?
These types of cryptocurrencies have become highly popular among traders due to their enhanced volatility, offering the chance of substantial profits in a short period. However, some of the memecoins are based on trends and have little-to-no use cases, meaning investors should keep in mind the risk.
We recently released a dedicated video that outlines the biggest such assets by market capitalization, their specifics, and purposes. Those curious to find out more can watch the video below:
