Trading of meme coins has spiked on Indian cryptocurrency exchanges, taking a cue from a resurgence in the global crypto market where the blue-chip Bitcoin and Ethereum currencies have scaled to new record highs after a year and half of falling prices.
Popular meme coins such as Shiba Inu (SHIB), Dogecoin, Floki, Vita Inu, Doge Bonk and PepePAD accounted for around half the total trading value of $113 million on the top three Indian crypto exchanges in the 24 hours till 7 pm Tuesday, according to data from global crypto data platform CoinMarketCap.
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Prior to this surge in trading that started on Sunday, these “penny-stock-like”, highly volatile coins had an around 30% share in the value of crypto trades in India.
“Some share of speculative activity has always been there in meme coins,” said Siddhartha Gupta, senior vice-president at CoinDCX, one of the largest crypto exchanges in India.
Also read | Cryptoverse: Breezy bitcoin reclaims $1 trillion crown
Investors who had accumulated meme coins during the last bull cycle in 2021 are now selling them, Gupta said. “We predict this may even accelerate more towards mid-year as the alt coins drive the surge cycle.”
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In contrast to the more established cryptocurrencies which see a cyclical pattern, meme coins, or alternative coins that are named after characters, are cheap, highly volatile and risky bets with their prices often driven by social media communities. Investors are drawn to them because they have a potential to yield quick returns, as the value can suddenly skyrocket. For instance, just in the past seven days, SHIBs have vaulted 318% while Doge has gained 116%.
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“Meme coins or tokens are like penny stocks. For instance, SHIB is currently traded at $0.00004299,” said Rajagopal Menon, vice-president at WazirX, another exchange. “With the ongoing bullish crypto market sentiment where both Bitcoin and Ethereum are touching all-time highs, altcoins and meme coins are also witnessing a good surge.”
On Tuesday, Bitcoin hit a high of $69,202, topping November 2021’s all-time peak of $68,999.99. The coin is up more than 50% over the last six months, and experts predict this cycle will lift it above the six-figure mark.
They expect meme coins too to continue benefitting from the momentum in the market.
Meme coins are usually created by online communities for entertainment and their prices fluctuate with social media armies, such as those on Reddit, engaging in fun banter.
Tech leader Elon Musk is widely known for his fondness for Doge. In one instance last year, Doge coin’s value climbed 30% within minutes when Musk changed X’s logo to the Doge meme face for a short while.
When it comes to investing as well, these coins constitute a large share of the global crypto market. Doge and SHIB are the ninth and eleventh most traded among 2.2 million cryptocurrencies globally. Out of the total crypto market capitalisation of $2.34 trillion, these two currencies hold nearly $33 billion between them.
“Globally, we are seeing the rise of meme coins, with roughly seven meme coins now ranking among the top 100 cryptos by market cap,” said Parth Chaturvedi, investments lead at CoinSwitch Ventures.
“With a total market cap of over $54 billion, the rise of meme coins indicates a shift in investor interest towards this bucket of crypto assets. However, with the rise of the crypto market comes retail FOMO (fear of missing out), which may have induced speculative buying,” he said.
Trading of meme coins has spiked on Indian cryptocurrency exchanges, taking a cue from a resurgence in the global crypto market where the blue-chip Bitcoin and Ethereum currencies have scaled to new record highs after a year and half of falling prices.
Popular meme coins such as Shiba Inu (SHIB), Dogecoin, Floki, Vita Inu, Doge Bonk and PepePAD accounted for around half the total trading value of $113 million on the top three Indian crypto exchanges in the 24 hours till 7 pm Tuesday, according to data from global crypto data platform CoinMarketCap.
Elevate Your Tech Prowess with High-Value Skill Courses
Prior to this surge in trading that started on Sunday, these “penny-stock-like”, highly volatile coins had an around 30% share in the value of crypto trades in India.
“Some share of speculative activity has always been there in meme coins,” said Siddhartha Gupta, senior vice-president at CoinDCX, one of the largest crypto exchanges in India.
Also read | Cryptoverse: Breezy bitcoin reclaims $1 trillion crown
Investors who had accumulated meme coins during the last bull cycle in 2021 are now selling them, Gupta said. “We predict this may even accelerate more towards mid-year as the alt coins drive the surge cycle.”
Discover the stories of your interest
In contrast to the more established cryptocurrencies which see a cyclical pattern, meme coins, or alternative coins that are named after characters, are cheap, highly volatile and risky bets with their prices often driven by social media communities. Investors are drawn to them because they have a potential to yield quick returns, as the value can suddenly skyrocket. For instance, just in the past seven days, SHIBs have vaulted 318% while Doge has gained 116%.
ETtech
“Meme coins or tokens are like penny stocks. For instance, SHIB is currently traded at $0.00004299,” said Rajagopal Menon, vice-president at WazirX, another exchange. “With the ongoing bullish crypto market sentiment where both Bitcoin and Ethereum are touching all-time highs, altcoins and meme coins are also witnessing a good surge.”
On Tuesday, Bitcoin hit a high of $69,202, topping November 2021’s all-time peak of $68,999.99. The coin is up more than 50% over the last six months, and experts predict this cycle will lift it above the six-figure mark.
They expect meme coins too to continue benefitting from the momentum in the market.
Meme coins are usually created by online communities for entertainment and their prices fluctuate with social media armies, such as those on Reddit, engaging in fun banter.
Tech leader Elon Musk is widely known for his fondness for Doge. In one instance last year, Doge coin’s value climbed 30% within minutes when Musk changed X’s logo to the Doge meme face for a short while.
When it comes to investing as well, these coins constitute a large share of the global crypto market. Doge and SHIB are the ninth and eleventh most traded among 2.2 million cryptocurrencies globally. Out of the total crypto market capitalisation of $2.34 trillion, these two currencies hold nearly $33 billion between them.
“Globally, we are seeing the rise of meme coins, with roughly seven meme coins now ranking among the top 100 cryptos by market cap,” said Parth Chaturvedi, investments lead at CoinSwitch Ventures.
“With a total market cap of over $54 billion, the rise of meme coins indicates a shift in investor interest towards this bucket of crypto assets. However, with the rise of the crypto market comes retail FOMO (fear of missing out), which may have induced speculative buying,” he said.
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