- Meme coin department flourishes with a 7.7% 24-hour market cap rise.
- Led by POPCAT, feline-themed meme coins throw the gauntlet to dogs.
- Switched trader behavior explains the hopes of a looming “super cycle.”
Last weekend, a huge stream of on-chain activity triggered a memecoin renaissance, up 7.7% over the past 24 hours, to approach $55 billion in market cap. The surge in activity and prices has resulted from capital relocation to more speculative assets.
Popcat Is Slicing Through Levels
Intriguingly, this has caused intense competition between cat—and dog-themed meme currencies, with Solana’s Popcat (POPCAT) emerging victorious as the strongest beneficiary of this capital inflow. Just three hours ago, Solana’s POPCAT touched a new all-time peak of $1.47, whipping up 51.5% gains in seven days.
At a market cap of $1.4 billion, the feline coin has claimed #63, dethroning Floki (FLOKI). At #64, Floki falls $30 million short of Popcat, currently fetching $1.37 billion amidst a 6% daily upswing, priced at $0.0001396.
FLOKI’s supply is extensive, with 10T FLOKI minted in total. After several heavy Floki burns, the number was reduced to 9.689T. To compare, Popcat’s tokenomics are tighter, being limited to below 1 billion tokens. With 979,978,694 tokens in circulation, POPCAT resembles Dogwifhat (WIF), the latter capped at 998,926,392 on Solana’s blockchain.
Is Meme Coin Fever Really Back?
As Bitcoin (BTC) briefly touched $63,906 in the early hours of Monday, October 7, 2024, the northbound price action nearly erased the month’s first-week deficit. Bitcoin lost its bearish grip on October 4, 2024, rising past $62,000 after fighting to stay above the key support of $60,000 for consecutive days.
However, BTC is far from leading the rally, partly due to a shifting trend in trader psychology. According to crypto analyst Ali Martinez, leverage use is skyrocketing to yearly heights. This metric sets the tone for meme coin demand in the Derivatives market as investors turn to riskier crypto assets for potentially higher rewards.
Currently, Popcat’s 24-hour Derivatives volume encompasses $1.37 billion, rising by 131% in volume and 13% in Open Interest (OI), meaning unsettled leveraged plays on the coin. Despite picking up over 100% gains in this metric, Floki hardly competes with POPCAT’s speculative demand with a daily volume of $229.5 million, according to CoinGlass data.
Regardless, crypto analyst and Mechanism Capital founder Andrew Kang included Floki in the four plausibly biggest beneficiaries of this capital inflow-fueled memecoin rally: “Setting up to join the 4 greats of this cycle – BONK, WIF, PEPE, FLOKI.” Indeed, these four meme coins scored a double-digit run on Monday. WIF emerged as the leader with 16.6% gains to claim $2.62, bursting to a 53.3% rally over the past two weeks.
On the Flipside
- With over $2M of $2.60M liquidated positions short, many traders are looking to short-sell Solana’s Popcat (POPCAT).
- Sharp price rises forming parabolic curves in the price charts often lead to hefty deviations at the selling point and drastic corrections.
Why This Matters
The rebound rally-leading digital assets are corresponding to trader behavior, as it forms market demand. Notably, meme currencies are prone to higher price fluctuations than regular altcoins.
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