Why are memecoins up today?

The recent recovery in cryptocurrency prices has seen the largest market caps memecoins like Dogecoin ( DOGE ), Shiba Inu ( SHIB ), and Dogwifhat ( WIF ) record double-digit gains over the past month. 

First Neiro on Ethereum (NEIRO), a new memecoin deployed on the Ethereum network in late July, rallied the most, gaining over 3,330% over the last 30 days and 63% over the past week. It has added 13% to its value over the last 24 hours. Popcat ( POPCAT ) followed with a 137% monthly gain, and Mog Coin ( MOG ) came in third after climbing 102% in the same period.

Performance of top meme tokens by market capitalization. Source: CoinMarketCap

DOGE, SHIB and Pepe ( PEPE ) also rose 11.8%, 32.8% and 38% on the monthly time frame, while WIF climbed 63%. 

Memecoin trading volumes explode 

CoinMarketCap shows that the market capitalization of meme tokens has surged by 34.7% over the past four weeks to $48 billion at the time of publication, reflecting renewed investor confidence in the sector.

The daily trading volume increased by 220% from $2.7 billion on Sept. 8 to a monthly high of $8.6 billion on Oct. 2 before retracing to the current $6.8 billion. The increase in trading volume among memecoins indicates the intensity of the demand-side pressure experienced within the sector over the past month.

Market capitalization and volume of memecoins. Source: CoinMarketCap

Corroborating this, data from Dune reveals that memecoin weekly transaction flows for memecoins across all blockchains, including Ethereum, Solana and Tron , have surged collectively by 161.7% from its recent low of roughly $110.5 million during the first week of September to $289.2 million the week ending Oct. 4.

Memecoins total trading volumes. Source: Dune

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.