Bitcoin recently surged to a new all-time high of $93k,
leaving investors anticipating the next rally, possibly past $100k. However, as BTC continues
to soar, a new trend involving Bitcoin-based meme coins is emerging. These niche tokens
have attracted heightened speculation, driven by the excitement
around Bitcoin’s rise.
Bitcoin Memecoins
Bitcoin’s rally to $93,000 ignited fresh excitement across
the crypto market. Memecoins tied to Bitcoin, including PUPS, DOG•GO•TO•THE•MOON,
and BILLION•DOLLAR•CAT, are capturing the attention of traders as a high-risk,
high-reward alternative, Coindesk reported.
According to CoinGecko data, some of these tokens have posted impressive gains over the past 24 hours, with smaller tokens like CYPHER•GENESIS (CYPHER) rising by 50%. The surge in interest for Bitcoin-based meme coins coincides
with a significant shift in the underlying infrastructure.
The Runes protocol,
a platform for creating fungible tokens directly on Bitcoin, has reportedly
overtaken BRC-20 in market capitalization. Launched in early 2024, Runes utilizes Bitcoin’s Unspent
Transaction Outputs (UTXOs) model, enabling the creation of fungible tokens
without congesting the network.
Unlike BRC-20, Runes aligns more closely with Bitcoin’s
native transaction structure, potentially reducing the buildup of UTXOs.
Despite the recent excitement, on-chain data shows no immediate
increase in usage metrics for Runes.
A New Bet on Bitcoin
Memecoins have become a speculative asset class during
periods of low volatility in more established crypto sectors. With Bitcoin
reaching new peaks, traders are shifting to meme coins to gain exposure to the
broader Bitcoin ecosystem without directly investing in BTC.
The trend reflects previous surges in meme tokens on other
networks like Ethereum and Solana, where tokens experienced significant rallies
following gains in their respective parent networks.
The crypto market recently experienced an unprecedented
surge, with Bitcoin hitting an all-time high of $93,495. One factor
contributing to this growth is Donald Trump’s victory in the just-concluded US
elections.
The market also benefited from retail and institutional
investors’ growing adoption of spot Bitcoin ETFs. Following the rally, industry
experts are now predicting prices between $80,000 and $100,000 or more. The
analysts base their forecasts on Bitcoin ETFs, institutional inflows, and
market dynamics.
This article was written by Jared Kirui at www.financemagnates.com.
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