Meme coins tumbled with wider crypto assets in the past 30 days sparking outflows in the market. Meme coins which are known for its over-the-market price rallies are trading their shadows as the correction bites harder. However, bulls opine a turnaround citing macro conditions and recapitalization of crypto holdings by users.
At press time, the total meme coin market cap stands at $44.4 billion, falling 5.8% in the last 24 hours and alongside a decline in volumes. To put into perspective, the market cap was above $70 billion this year showing a significant chunk wiped out since the last meme coin frenzy. Market analysts give reasons why an uptick could spark life in the asset class.
Meme Coins To Rebound With Crypto Assets
The majority of market commentators opine a bullish momentum in meme tokens in line with a similar pattern in Bitcoin. This has been the status quo as positive sentiments in the market leader can spur growth in other areas. A typical example is inflows to spot Bitcoin ETFs which resulted in growing decentralized finance (
DeFi) numbers and a meme coin frenzy.
July was tipped as a bullish month for the market but factors like the German sale of assets and Mt Gox repayment plunged sentiments. This also affected meme coin numbers. However, as bulls eye a price uptick in
Bitcoin and Ethereum, holders of meme tokens remain optimistic about a price rebound.
Potential Interest Rate Cuts
The Federal Reserve slashing interest rates this year will drive investments in risky assets with meme coin holders projecting a price growth. Rate hikes on the other hand have sparked outflows due to the volatility of these assets. The latest US Job data heightened optimism for rate cuts in September leading to posit macro sentiments. Furthermore, these coins could ignite with users switching holdings to make quick rewards from certain assets.
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