Memecoins Rise 20% in a Month...Experts: 'Too Early to Diagnose a Bull Market'

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The memecoin market recently surged by about 20% over the past month, reaching a market value of $34 billion. However, experts have stated that it is too early to discuss a full market rebound.

According to DL News on April 23 (local time), the memecoin sector experienced a strong rally over the past month, achieving a market capitalization of $34 billion. However, virtual asset experts cautioned against premature optimism, emphasizing that the memecoin market is still down approximately 75% from its peak of $140 billion recorded in December 2024. Illia Otychenko, Lead Analyst at CEX.IO, explained, "The rise in the memecoin sector is a result of improved risk appetite, increased on-chain speculation, and rapid gains from some large tokens."

The overall virtual asset market size increased by about $300 billion, or 15%, during April, with recovering investor sentiment driving memecoin price increases. However, Otychenko pointed out that this upward trend is concentrated in a few specific tokens. Indeed, Dogecoin (DOGE) remains down 87% compared to its all-time high recorded in 2021.

In the market this week, MemeCore, Pudgy Penguins, and SPX6900 recorded double-digit or higher returns, showing unique growth among top memecoin assets. However, a significant number of memecoins listed on CoinMarketCap experienced declines during the same period, indicating a deepening polarization of returns within the market.

Memecoins have strong speculative characteristics, with their prices determined more by social media buzz or online humor rather than actual technological value. Like the peanut-related token case that gained attention during the 2024 U.S. presidential election, temporary influxes of funds driven by transient issues lead price fluctuations. Experts diagnose that for the memecoin sector to fully recover its past market size, sustained capital inflows across the entire ecosystem are needed, beyond the surge of a few assets.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*