Memecoins Rally Amid Market Rebound

The crypto market, especially memecoins, has seen a notable rebound following Monday’s downturn. Solana-based and cat-themed memecoins both recorded substantial market capitalization gains in the last 24 hours.

According to BRN analyst Valentin Fournier from The Block, the market appears to be stabilizing after a heightened volatility period. Trading volumes have normalized after an unprecedented spike earlier in the week.

The CBOE Volatility Index (VIX) peaked at over 60 points on Monday but has since decreased to around 23.61 points. With signs of a recession, including weaker job data, the Federal Reserve may be pressured to adjust interest rates, potentially leading investors towards riskier assets.

Memecoins Market Explosion

Coingecko reports Solana-based memecoins have a market cap of $7.3 billion, marking a 35.2% increase in the last 24 hours, while cat-themed memecoins rose to $2.43 billion, up 41.8%. Memecoins such as Dogwifhat (WIF), Popcat, and Michi posted significant gains of up to 35%. Major players like Dogecoin, Shiba Inu, and Pepe also saw increases between 2.6% and 6.89%.

The PolitiFi memecoin market cap is now at $589 million after an 18% boost, with Elon Trump and MAGATrump surging by 38% and 51%, respectively. Incidentally, a misspelled Solana-based memecoin called Tem Walz briefly soared to a market cap of nearly $1 million before crashing.

Amidst Tuesday’s market volatility, TrumpCoin saw a massive drop over 90% when a significant amount was sold off hastily.

The Block’s GMCI index indicates that the memecoin sector had a 6.42% rise over 24 hours.

Trading Opportunities Arise

K33 analysts noted potential short-term profit opportunities amid the Solana rebound, particularly through mean reversion trading strategies. The analysts highlighted Solana’s recent strength and its appeal for long positions, especially for higher-risk memecoins following the recent market turmoil.

However, uncertainties loom as rumors suggest Jump Crypto, a significant backer of Solana, might be exiting its market-making pursuits, with recent asset movement observed.

At the time of writing, Solana traded at about $154.10, reflecting an 11% increase over the last day. Additionally, the total value locked in decentralized finance applications on Solana surged by over 25%.

Editor’s note: This article has been updated for clarity and to include expert insights.