Meme Coins Outperform BTC, ETH and SOL as Traders Rotate Holdings
The meme coin sector, valued at $53 billion, increased by over 12% on Tuesday, with pepe (PEPE) and dogwifhat (WIF) rising by 22% and 25% respectively. This surge followed bitcoin's (BTC) recovery to a one-month high of $65,000 before falling back to $63,000. The CoinDesk 20 Index (CD20), which tracks the performance of large-cap tokens, rose by 2.3% in the past 24 hours. Meme coins based on American politics, such as America Coin (USA) and Super Trump (STRUMP), also increased by 204% and 43% respectively after Donald Trump was injured in a shooting. Meme coins typically perform well when BTC and ETH are rangebound near local highs but perform poorly when the wider market falls. For instance, WIF rose by over 60% in May when BTC traded between $66,000 and $69,000 but lost 60% of its value following a market plunge.
