The entire market’s value has surged over 14% in the past seven days to almost $82 billion, according to data from CoinGecko.
Investor appetite has been piqued by easing geopolitical tensions, crypto laws being signed, and Bitcoin’s consolidating price, James Butterfill, head of research at CoinShares, the crypto investment firm, told DL News.
“As risk appetite improves across all asset classes, the combination of subdued Bitcoin volatility and investor demand for higher returns is beginning to push capital towards riskier altcoins,” Butterfill said.
The rally highlights a growing bullishness for digital assets. Investors’ optimism has driven Bitcoin as well as altcoins like XRP and BNB to new record highs. It also comes as Ethereum has climbed within spitting distance of breaking another record.
Memecoins, sometimes derisively referred to as shitcoins, are joke tokens that trade purely on speculations and have no intrinsic value.
They’re usually based on celebrities, online jokes, and odd news items, such as Peanut, the squirrel that became a MAGA symbol ahead of last year’s US election.
A combination of celebrity memecoins — including those launched by the Trump family — and the overall buzz around the crypto industry propelled the market’s value to over $137 billion in January, according to CoinMarketCap.
Following a number of scandals, including one involving a token connected to Argentina’s president Javier Milei, and the general pullback of the crypto industry, the memecoin market deflated to just under $40 billion in April.
“Many memecoins represent a complete ‘random walk,’ where the only real investment rationale is that if you’re not on the inside of the pump, you’re likely on the receiving end of the dump,” Butterfill said.
“For institutions, it remains extremely difficult to construct rational investment cases for memecoins outside of the top 20 assets by market cap.”
The bullishness is partly driven by investors betting that the tariffs Donald Trump threatened trading partners with won’t be as damaging as some expected when they were announced in April. This, Butterfill said, supports investors’ risk appetite.
This week also provided another potential boon to risk-on assets like cryptocurrencies: The expectation that the Federal Reserve will cut interest rates in September.
