Despite a recent downturn in the cryptocurrency market, meme coins are proving to be resilient and even thriving.
Let's explore why these quirky digital assets are still catching investors' eyes and what makes them some of the most exciting crypto meme coins to invest in.
It's no secret that the crypto market can be a rollercoaster with wild ups and downs. Yet, meme coins are bucking the trend.
According to a report from research firm Kaiko, these playful tokens have posted year-to-date returns ranging from 80% to a staggering 1,800%. Even with the market correction, meme coins like DOGE, SHIB, and PEPE have maintained their momentum.
But what’s driving these impressive gains? One key factor is their adaptability and community engagement. Unlike more traditional assets, meme coins thrive on their viral nature and the buzz they generate on social media platforms.
This constant chatter keeps them in the spotlight, attracting new investors, and keeping trading volumes high. In fact, trading volume for meme coins has surged over 200% this year, reaching around $11 billion weekly.
The Volatile Relationship with Meme Stocks
Interestingly, the relationship between meme coins and meme stocks, like GameStop (GME) and AMC Entertainment, is anything but stable.
Over the past year, the 60-day rolling correlation between DOGE and GME has generally stayed below 0.3, indicating a weak link.
However, there are moments when this correlation spikes. For instance, when meme stocks saw unexpected gains last week, the correlation between DOGE and GME hit its highest point in over a year.
This surge was partly fueled by the return of RoaringKitty, one of the key figures behind the GameStop rally in late 2020. His comeback reignited interest in meme stocks, which, in turn, spilled over into the meme coin market.
The Shift in Crypto Liquidity
When it comes to liquidity in the crypto space, Bitcoin and Ethereum still dominate.
In 2024, Bitcoin’s average daily market depth was over $270 million, far surpassing most altcoins.
Ethereum followed with an average market depth of $190 million. However, there’s a noticeable shift happening.
Altcoin liquidity has been on the rise over the past two years, while Ethereum’s liquidity relative to Bitcoin has decreased from 83% in 2022 to 72% in 2024.
This shift is significant as it shows growing investor interest in a broader range of cryptocurrencies, including meme coins.
With a market cap of $57.89 billion, meme coins are now overshadowing the AI and big data token sectors, which have a market cap of $43.17 billion.
The trading volume for meme coins also dwarfs that of AI tokens, underscoring the heightened interest and potential for high returns.
What’s Next for Meme Coins?
The phenomenal price rallies of top meme coins like DOGE, SHIB, and PEPE highlight their potential for impressive returns. For example, PEPE hit an all-time high this year, delivering substantial profits to investors.
Similarly, DOGE and SHIB have seen gains of 100%–200% on their annual charts, fueling optimism about their short-term prospects.
Crypto market analyst Miles Deutscher points out that meme coins like PEPE and Solana-based WIF could be some of the best investments this bull cycle, thanks to their favorable risk/reward ratios. This measure helps investors assess potential returns relative to the risks involved.
While AI and big data tokens are also showing promise, especially with tech giants like Nvidia pushing the boundaries of AI, meme coins remain a hot topic among investors.
Their ability to generate quick returns and the vibrant communities behind them make meme coins some of the most intriguing investments in the crypto world today.