Memecoins like dogecoin and Shiba Inu are gaining market share within the broader crypto economy, according to a research report by CEX.IO.
The question is whether this is just how things work in the early stages of a bull market these days, or a harbinger that things have gotten overheated. "However, this cycle stands out due to the significant rise in memecoin influence occurring well before the halving, and persisting even during bitcoin’s consolidation mid-year," Kerya added.
As a sector, memecoins saw a 330% increase in their combined market capitalization over the period from Jan. 1 to Dec. 1, the report said. For comparison, bitcoin is up 140% since the beginning of the year, while ether is up 71%. Memecoin trading volume grew 979% in the same period, and now accounts for 5.27% of the entire crypto market's volume. Furthermore, memecoins retained significant volume in June while other sectors of the crypto economy saw declines.