The meme coins have recorded robust surge today, with several factors boosting the broader market sentiment. Notably, all major players like DOGE, SHIB, PEPE, and others have rallied.
Why Meme Coins Are Rising Today?
FTX Repayment Boosts Market Sentiment
The cryptocurrency market is showing signs of optimism today, with some analysts pointing to potential cash injections as a key driver. Speculation is swirling around FTX, the collapsed exchange, which may distribute a whopping $16 billion to former customers.
Meanwhile, experts believe a significant portion of this cash could flow back into crypto, fueling growth. This optimism seems to have boosted market optimism while driving the meme coins prices higher as well today.
Notably, reinvestment by these crypto-savvy individuals could create substantial buying pressure, boosting prices. While the exact impact remains to be seen, even a partial return of these funds could be a major shot in the arm for the crypto market, let alone the meme coins.
Bitcoin ETF Inflow & Ether ETF Anticipation Boosts Meme Coin Performance
The U.S. Spot Bitcoin ETF recorded an inflow of $143.1 million on July 6, indicating that the institutions are likely to have regained confidence in the crypto. This has provided a robust boost to the broader crypto market, as well as the meme coins.
On the other hand, the anticipation over Ethereum ETF approval by the U.S. SEC in mid-July has also lifted market confidence. For context, the market is betting on an altcoin rally along with renewed confidence toward meme coins, following the U.S. Spot Ethereum ETF approval.
VanEck Shares Crypto Post On Solan
VanEck was the first firm in the U.S. to apply for a Solana ETF with the U.S. SEC. This move has fueled confidence in the crypto market, bumping up the Solana price as well as the Solana-based meme coins.
However, in a recent X post, VanEck shared a cryptic post that hints that the firm has added Solana to his portfolio. For context, in a recent X post, VanEck said “i got sol, but im not a soldier.”
Meme Coins Rally
The overall meme coins market cap was up nearly 13% today to $41.77 billion, with almost all the major players in the segment rallying. For instance, Dogecoin price soared more than 10% today, with Shiba Inu price rising about 15%. Simultaneously, Pepe Coin price advanced about 11% while dogwifhat price jumped 17%.
Meanwhile, the recent crypto market crash was mainly due to immense selling pressure from the German and U.S. governments. For context, the governments have dumped massive amounts of Bitcoin recently to exchanges, which has sparked concerns in the crypto market, also impacting the meme coins’ performance.
In addition, the panic selling in the market was further fueled by Mt. Gox’s repayment to the creditors in BTC and BCH. However, analysts have suggested that the government selling BTC is likely to have very little impact on the crypto market.
For context, Ki Yong Ju, founder of CryptoQuant, downplays fears of a government Bitcoin dump impacting the market. He points out that despite $224 billion flowing into Bitcoin since 2023, government-seized Bitcoin sales only amount to roughly $9 billion.
This translates to a mere 4% of the total Bitcoin value realized since 2023. Ju advises investors not to let FUD (fear, uncertainty, doubt) surrounding government selling influence their trading decisions. This comment might have also helped gains in the meme coins sector today.
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