Memecoins Rise 20% in a Month...Experts Say "Too Early to Declare a Bull Market"

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The memecoin market recently surged by approximately 20% over the past month, reaching a market value of $34 billion. However, experts have analyzed that it is too early to discuss a full-fledged 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. Nevertheless, virtual asset experts emphasized that the memecoin market is still down about 75% from its peak of $140 billion recorded in December 2024, cautioning against premature optimism. Illia Otychenko, lead analyst at CEX.IO, explained, "The rise in the memecoin sector is a result of improved risk-taking sentiment, increased on-chain speculation, and rapid gains from some large tokens."

The overall virtual asset market size increased by approximately 15%, or $300 billion, during April, and this recovery in investor sentiment acted as a driving force for the rise in memecoin prices. However, Otychenko pointed out that this upward trend is concentrated in a few specific tokens. Indeed, Dogecoin (DOGE) remains 87% below 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 registered on CoinMarketCap experienced declines during the same period, indicating a deepening polarization of returns within the market.

Memecoins have strong speculative characteristics, with prices determined more by social media buzz or online humor rather than actual technological value. Like the case of peanut-related tokens that gained attention during the 2024 US presidential election, temporary issues drive capital inflows and price fluctuations. Experts diagnose that for the memecoin sector to fully recover its past market size, continuous capital inflow across the entire ecosystem is 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.*