The cryptocurrency market has recently witnessed an explosive rise in the popularity of memecoins, significantly altering the landscape of top crypto rankings. In a notable shift, Shiba Inu has overtaken Cardano in market capitalization, propelling itself into the top 10 rankings.
The Rise of Memecoins
Over the last few weeks, the memecoin segment of the market has experienced a remarkable bullish run. Cryptocurrencies like Pepe, Shiba Inu, and Dogwifhat have reached new all-time highs, resulting in major shifts within the market hierarchy. These digital assets, often characterized by their internet meme-inspired themes and community-driven appeal, have managed to outperform several established cryptocurrencies.
Shiba Inu, with a market cap of $16.4 billion, has surpassed Cardano, which now sits at a market capitalization of $16.3 billion. This shift has pushed Cardano down to the 11th spot, a significant drop from its peak during the 2020-2021 bull run when it was ranked third.
Comparative Analysis
Cardano currently trades at $0.45, which is over 80% below its all-time high of more than $3.10. This contrasts sharply with the performance of Bitcoin and some altcoins, which have largely recovered from the previous cycle’s losses and have even set new records. Meanwhile, similar to XRP, Cardano appears to be confined within a limited price range.
Pepe briefly surpassed Polygon for the 18th rank as it hit a new all-time high, though it quickly corrected and fell to the 19th position. Another newcomer, Dogwifhat, has also made significant strides, overtaking Hedera for the 28th spot as it reclaimed its $4 billion market cap.
The 2021 bull cycle was marked by a memecoin rally in various phases, but this cycle is dominated by a new generation of memecoins, most of which are less than a year old. This new wave includes Pepe, WIF, and Book of Meme, each achieving significant gains shortly after their creation.
While the original memecoin, Dogecoin, and the previously popular Shiba Inu have seen substantial rallies, their performances are modest when compared to the newer memecoins or even their own past achievements.
Market Trends and Insights
Memecoins have not only thrived during a period of sideways movement and predominantly red figures in the broader crypto market but have also achieved remarkable gains. This trend underscores the unique market dynamics driven by viral trends and community engagement rather than traditional financial metrics.
In the last 24 hours, six out of the top ten gainers have been memecoins, and the weekly charts reflect a similar trend, highlighting the growing influence and appeal of these cryptocurrencies.
| Cryptocurrency | New Market Cap | Previous Rank | New Rank |
|---|---|---|---|
| Shiba Inu | $16.4 billion | 11th | 10th |
| Cardano | $16.3 billion | 3rd | 11th |
| Pepe | – | 19th | 18th (briefly) |
| Dogwifhat | $4 billion | – | 28th |
The ongoing memecoin mania exemplifies a significant shift in the cryptocurrency market, where novelty and community support can drive market value, often at the expense of more established coins like Cardano. This trend raises important questions about market stability, investor behavior, and the long-term viability of memecoins in the competitive cryptocurrency ecosystem.
Featured image credit: Karin chantanaprayura via Vecteezy