Mt. Gox Refund Triggers Panic, But Meme Coin Market Cap Surges 7.5% in One Day – What’s Fueling the Surge?

What can we expect from the meme coin market after a 7.5% rise in a single day? Read more

The cryptocurrency market has been on a roller coaster ride over the past 24 hours, rebounding from heavy losses triggered by two major events: Mt. Gox refund online and the German government unloading it’s Bitcoin (Bitcoin) assets.

These incidents caused widespread panic, leading to a sharp drop in cryptocurrency prices. However, in the last 24 hours, the market capitalization of meme coins has rebounded and jumped by almost 7.5%, according to CoinGecko.

Leading this recovery are Solana (GROUND) meme-based coins, which have seen an impressive increase of over 14.5%. The star of the show is Bonk (BONK), which jumped nearly 12.5% ​​and is currently trading at $0.00002641 as of July 9.

Brett (BRETT), hosted on Coinbase Base blockchain, which is up nearly 7%, is trading at $0.1306.

Additionally, PolitiFi meme coins, inspired by political figures and movements, have also seen significant gains. The market cap of PolitiFi meme coins has increased by nearly 13.7% in the last 24 hours.

ConstitutionDAO (PEOPLE) jumped 5.5%, trading at $0.05835, while the Trump-inspired MAGA coin (ASSET) rose 6.1%, trading at $6.21.

Interestingly, dog-based meme coins, which once dominated the meme coin category, have seen a modest increase of around 6.3% in the last 24 hours.

Low-cap dog-based coins are driving this growth, while popular coins like Dogecoin (DOGE) and Shiba Inu (SHIB) fell 0.9% and 2.6%, trading at $0.1085 and $0.00001638, respectively.

Let’s dive deeper into the meme coin ecosystem, explore the latest developments, and consider what might happen next as the market continues to recover.

The hype around Solana’s Pump.fun

In recent months, Solana-based marketplace Pump.fun has become a hub for meme coins.

Pump.fun allows users to create and distribute their own tokens, often memecoins. These tokens typically have no intrinsic value beyond their novelty and the community that has built around them.

What sets Pump.fun apart is its unique bonding curve mechanism: as demand for a token increases, its price rises along a curve, rewarding early investors.

Once a token’s market cap reaches $69,000, it is eligible for listing on the Solana-based Raydium decentralized exchange, with $12,000 of token deposited and then burned.

Pump.fun has had substantial experience growth in its revenue generation. When it started in March 2024, the platform generated average daily revenues of $50,000 to $100,000.

By July 9, those numbers had jumped to an average of $50,000 to $700,000 per day, with some days even exceeding $1 million.

Pump.fun Daily Revenue Chart | Source: The Block

Notably, on July 1, Pump.fun achieved its highest ever revenue of $1.99 million, almost touching the $2 million mark, which is a 40x increase from its debut just a few months ago.

With such rapid growth, the platform has attracted the attention of many celebrities, although many of their meme pieces have struggled to maintain lasting interest in the market.

Solana-based coins continue their dominance

The latest buzz surrounds Lionel Messi, the legendary Argentine footballer and FC Barcelona icon, who recently approved Solana shared the Water (WATER) memecoin on his Instagram account to his 504 million followers via a story. Water’s Instagram page reaffirmed Messi’s endorsement as an official representative.

Following its announcement, according to CoinGecko, WATER surged nearly 180% in the last 24 hours as of July 9, trading at $0.0008998, although down about 68% from its all-time high of $0.00278.

24-hour water price chart | Source: CoinGecko

Launched just two weeks ago, WATER now orders a market capitalization of $66 million and a daily trading volume of nearly $100 million, according to DEX Screener.

Additionally, Solana-based pairs dominate on DEX Screener, with 75 of the top 100 pairs being Solana-based.

SOL-based pairs, the majority of which are meme coins, have collectively collected around $2 billion in trading volume in the past 24 hours, surpassing Ethereum-based pairs at $1.5 billion, Binance Smart Chain (BSC) pairs at $780 million, and base pairs at $630 million, reflecting growing interest in Solana-based meme coins.

Amidst this excitement, Solana co-founder Anatoly Yakovenko propose new advancements in this vertical. He suggested bringing in developers to create custom features for meme coins, effectively reversing the initial coin offering (ICO) process.

Yakovenko’s project involves meme teams offering grants to developers, who would then choose the best options from among the projects with fair and transparent terms.

His proposal, shared on social media, sparked discussions about how meme projects could establish a stable onboarding process for retail users and encourage institutional investors to adopt cryptocurrencies.

What to expect next?

Meme coins are no longer limited to DOGE and SHIB. With the rise of celebrity tokens, PolitiFi tokens, and a general increase in new meme coins, the market is becoming saturated. Thousands of meme coins are popping up every day, each with their own unique community and story.

If the bullish momentum continues and the market continues to rally, we could see meme coins rise even further.

At their peak this year, meme cryptos collectively had a market cap of over $70 billion. However, that figure has declined by about 35.7% to about $45 billion at present.

This scenario reflects the NFT boom of 2020 and 2021. During this period, NFTs offered little real utility beyond being collectibles, leading to a massive bust.

While NFTs have since evolved to offer more utility, the industry has struggled to regain its former glory. The same could happen with meme coins.

Despite their current popularity, many meme coins lack substantial utility and their value is often driven by hype and community enthusiasm.

As we move forward, it’s essential to approach investing in memes with caution. Market volatility means prices can rise or fall quickly.

While the potential for significant gains exists, the risk of substantial losses also exists. It is essential to do thorough research and understand the fundamentals of each cryptocurrency before investing.

Stay informed, diversify your investments and never invest more than you can afford to lose.

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