The memecoin market is on fire, as coins like Bonk and Dogecoin post significant gains, fueling optimism that the long-anticipated altcoin season may finally be underway.
Notably, crypto traders have begun rotating capital into altcoins and meme coins, even as Bitcoin (BTC) dominance remains high and the broader market shows signs of consolidation.
Memecoins rally as market momentum builds
Bonk and Dogecoin are leading the charge this week, posting impressive daily gains as overall memecoin market capitalization surged past $59.7 billion.
Dogecoin has climbed by 4.7% over the past 24 hours to trade at $0.1718, riding on the back of renewed retail interest following Elon Musk’s latest pro-crypto political stance.
Meanwhile, Bonk has risen by 4.5% to $0.00002286, further cementing its position as one of the hottest tokens on Solana, especially after Bonk.fun overtook Pump.fun in bond volume and a new $50 million grant program was unveiled.
Over the past week, Bonk carries the day with an impressive 56.3% gain.
Also Read: BONK hits weekly high as market prepares for Tuttle Capital’s ETF launch
FLOKI also stands out, jumping over 14% following the successful mainnet launch of Valhalla, which added utility to the token and boosted investor confidence.
Shiba Inu and Pepe have also joined the party, with SHIB gaining 3.43% after a record 116 million token burn, while PEPE has climbed 5.25% amid strong whale accumulation and declining exchange supply.
These sharp moves reflect renewed risk appetite in the market, with daily memecoin trading volume rising over 64% to $7.34 billion in just 24 hours.
Breakout potential for altcoins
While memecoins are currently stealing the spotlight, analysts argue that the entire altcoin market may be on the verge of a broader breakout.
Michael van de Poppe, a widely followed crypto analyst, noted that the altcoin market has been in a consolidation phase since May, fluctuating between $1.01 trillion and $1.26 trillion.
Despite being down 23.63% from its yearly peak of $1.51 trillion, the market has held steady over the past two months, hinting at the potential for a bullish reversal.
Van de Poppe emphasized that the current sideways movement mirrors past cycles, where altcoin seasons typically followed periods of stagnation and low sentiment.
He also pointed to the Altcoin Season Index, which currently sits at 29 — far below the threshold of 75 needed to signal an official altcoin season.
The #Altcoin season index is showing that we’re about to fire up a massive altseason.
For the past 5 years, the #Altcoins Season Index bottomed in the Summer, primarily in June of every year.
What followed?
A strong second half of the year for Altcoins.
Given that we’re
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Still, the low index reading may indicate that a shift is coming, especially as historical data shows that altcoin momentum often builds in the second half of the year.
Historical patterns hint at a 76% upside
Drawing comparisons to Q4 2023, van de Poppe reminded investors that the altcoin market jumped 76.85% in that quarter alone, rising from $120.7 billion to over $213 billion in a matter of weeks.
If similar patterns hold, he predicts that a 76% surge or more could materialize again, especially with easing macroeconomic conditions and renewed interest in speculative assets.
Notably, top-performing altcoins like Maple Finance (SYRUP), Pudgy Penguins (PENGU), and Hyperliquid (HYPE) have already seen triple-digit gains in recent weeks, showing that pockets of the market are heating up ahead of a broader rally.
Although Bitcoin continues to dominate with a 36.65% monthly gain, the tide could soon turn in favor of altcoins as the market enters a new phase.
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