The meme cash market cap is at the moment hovering above $54 billion up by almost 20% ion the previous day. This surge is obvious as roughly seven meme cash now rank among the many prime 100 crypto by market capitalization, marking a major shift in investor curiosity in the direction of these as soon as ‘speculative property.’

A latest market report from QCP Capital has shed mild on this phenomenon, disclosing what drives this meme cash surge.

What Is Driving The Meme Cash Surge

In accordance with QCP Capital, the worth appreciation in meme cash could be attributed to a “speculative shopping for frenzy” through the Asia buying and selling session. Significantly, the agency report means that the rallying meme cash is pushed by retail FOMO (Concern of Lacking Out), indicating a major shift within the dynamics of market participation.

The analysts from QCP Capital additionally noticed a rise in leveraged shopping for exercise, hinting on the “sturdy” momentum that might doubtlessly pause ought to Bitcoin surpass its all-time excessive in greenback phrases. The market report learn:

Altcoins, particularly memecoins, are rallying laborious as retail FOMO actually kicks in now. Leveraged consumers will possible not relent till we break all-time highs, which may very well be any time now.

To this point, main meme cash akin to Dogecoin, Shiba Inu, PEPE, and BONK have registered. huge good points, with will increase of 27%, 57%, 46%, and 68% respectively over the past 24 hours. These good points mirror the rising investor curiosity in meme cash and underscore the broader development of retail funding driving the crypto market.

Dogecoin and Shiba Inu, particularly, have solidified their positions throughout the prime 15 world crypto market cap rankings, demonstrating the numerous traction meme cash have gained amongst traders.

Retail Participation Fuelling The Crypto Rally

The surge in memecoins is a component of a bigger development of elevated retail participation within the cryptocurrency market. Analysts from JPMorgan have echoed the observations made by QCP Capital, noting that retail merchants have performed a vital position within the cryptocurrency market rally noticed all through February.

The research carried out by the analysis group at JPMorgan, below the steering of Managing Director Nikolaos Panigirtzoglou, highlighted the numerous position of “small-scale traders,” generally often called ‘mom-and-pop’ merchants, in driving distinguished cryptocurrencies like Bitcoin to a two-year excessive final month.

The researchers famous:

We discover that the retail impulse into crypto rebounded in February, thus possible accountable for this month’s robust crypto market rally.

In the meantime, over the previous 24 hours, Bitcoin has reached new heights, buying and selling above $66,000, marking an almost 30% enhance over the previous week. This upward trajectory can also be evident within the asset’s market cap, which at the moment exceeds $1.2 trillion.

Featured picture from Unsplash, Chart from TradingView

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