A whole list of cryptocurrencies from the memecoins category have risen in price by hundreds of percent over the past month

Bitcoin has risen in price about one and a half times in the last month, so that its price has exceeded $66 thousand. But several well-known cryptocurrencies from the list of memecoins have overtaken the first cryptocurrency in terms of growth rates and brought their investors hundreds of percent of profit.

In the last 24 hours alone, the largest memecoins by capitalization have risen in price by tens of percent, according to CoinMarketCap. Among them, Pepe (PEPE), Bonk (BONK) and DogeCoin (DOGE) were the leaders of growth, adding 60%, 50% and 20% respectively.

Memecoins often grow significantly in value after Bitcoin and Ethereum rallies, and traders redistribute profits into altcoins.

The trigger for the rise in the price of memecoins may have been the soaring price of the PEPE token.

This happened after Binance, the world’s leading cryptocurrency exchange, launched a promotion with an opportunity to get PEPE tokens as a reward.

Over the past seven days, PEPE has increased in value by 376%, and over the past month the coin has risen by 632%. The trading volume of the token on exchanges has increased by 100% in the last 24 hours and reached $3 billion.

This time, the growth of memecoins coincided with another wave of popularity of DOGE, which almost doubled in price in one week. The capitalization of the asset reached $24 billion. Dogecoin is in the top ten leaders in terms of market capitalization according to CoinMarketcap.

The Shiba Inu memecoin (SHIB), inspired by the Shiba Inu dog breed, was in the growth leaders, adding 30% in the last 24 hours. A mechanism to reduce the number of tokens in circulation continues to support its price. Earlier this month, the development team announced that more than 643 million SHIB tokens were burned during February.

Despite the risk of high volatility, some large platforms, such as Solana, see memecoins as a way to expand their ecosystem and interact with users.

On March 4, for example, the Bonk memecoin (BONK) rose in price by 56%. Over the past six months, the price of this cryptocurrency has increased by thousands of percent largely due to the integration of the token into the Saga smartphone from Solana developers. And whose owners could claim a free BONK token giveaway.

The current rise in the cryptocurrency’s price coincided with the announcement of the BONK token development fund’s partnership with Revolut, the largest licensed fintech company. And serving over 38 million customers across Europe. Floki Inu, a meme cryptocurrency inspired by Ilon Musk’s dog, has broken into the top ten in terms of growth.

In the last seven days, the price of the FLOKI token has increased by 326%. Floki developers decided to pour oil on the fire by announcing in late February the burning of 2% of the total volume of tokens, which amounts to almost 200 billion FLOKI. Token burning is often considered by analysts as a factor that favors token value. New memcoins launching in late 2023, before the start of a bullish period in the crypto market, are generating notable returns for early investors.

New memecoins launching in late 2023, ahead of a bullish period in the crypto market, are generating notable returns for early investors.

The Solana blockchain-based token WIF has become one of the top altcoins in terms of growth over the past week. And having risen in value by nearly 400%. The growth was largely fueled by the token’s addition to leading US brokerage platform Robinhood.

Our experts note that In late February, analytics platform Lokonchain reported on a trader who made almost $1 million on WIF. Back in November 2023, he bought 2.58 million WIF for $310 in the Solana cryptocurrency. On February 27, the price of WIF rose to $0.57, and the value of the coins owned by the trader reached approximately $1.4 million. Thus, his profit from investing in the WIF token was 4500%.

Our experts told us why it is too early to talk about the start of general growth of altcoins (Altseason) other than Bitcoin and Ethereum. And what market conditions are needed for this.

The former head of BitMEX crypto exchange Arthur Hayes, known for his analytical forecasts on the cryptocurrency markets, announced the onset of the next Altseason. At the same time, he pointed to the sharp growth of Ethereum as the basis of his assumption.

Altcoin season (Altseason)  is a slang term for cryptocurrency traders that refers to a period of active one-time growth of alternative cryptocurrencies. Altcoin season is thought to take place in four phases: the rise of Bitcoin, the rise of Ethereum, the rise of large-capitalized cryptocurrencies, and the massive growth of the rest of the crypto market. This includes low-liquid assets with no fundamental value. Which is accompanied by a massive rush by retail traders.

Our experts told us why it’s too early to talk about an altcoin season and what market conditions are needed for it to start.

Altseason hasn’t started yet

Despite numerous claims that an “Altseason” has started in the digital asset market, our experts cannot agree.

Since the start of this year, Bitcoin’s (BTC) dominance has seriously increased. And at the moment, it shows no signs of decreasing. In general, Bitcoin has shown one of the most consistent dynamics in the cryptocurrency market since January. While the standard model of market behavior in the period of altcoin growth is the presence of BTC rate in a medium-term “sideways”. And without a strong rise or fall, and currently the medium-term uptrend on BTC is too confident for “Altseason”.

As for altcoins themselves, we can notice that there is no active capitalization growth there. Individual low-capitalized assets are “growing.” But this is not an indicator of the altcoin season, it only speaks to the local interest of participants in these assets.

The TOTAL2 index, which measures the growth of the total market capitalization of all altcoins (not including Bitcoin), is very slightly ahead of the total market capitalization index (TOTAL). This indicator shows that there is no multiple growth in demand for altcoins.

An important factor of Altseason is also the growth of the volume and number of transactions in the networks. As well as the growth of developer activity and audience activity. Again, we see growth of these indicators in individual assets. For example, in Ethereum, which had a successful fork allowing to take tokens from stacking. But overall, we are not seeing multiples of growth in investor and developer activity right now. After strong growth in January and February, the market is now looking for some balance. Which again does not signal that we have started an altcoin season.

When to expect growth

Our experts think that such a season is quite possible this year. But not before the second half of the year. The cryptocurrency market is still gathering energy for growth. And although we passed the bottom at the end of last year, the market has not yet reversed upwards: it takes time.

The growth season for cryptocurrencies, including altcoins, will start with the stabilization of stock markets. For that, there needs to be no geopolitical shocks. And also there were no problems such as still ongoing problems with banks in the U.S. and Europe. And also there were no predictions of an imminent global recession, and there are more and more of them.