- Meme coin category on CoinGecko experienced an 8.1% boost
- Current market capitalization is $66.8 billion
- Last week, the SEC declared that meme coins are not considered securities or financial instruments
As of today, the meme coin category on CoinGecko has experienced a notable surge, climbing 8.1% to a market capitalization of $66.8 billion. This move makes meme coins the best-performing category on the crypto data aggregator.
This is good news for this crypto segment considering that the market has experienced significant fluctuations lately. In late February, meme coins lost 59% of their market value from their peak, which had a ripple effect on the broader crypto market, including Bitcoin and Ether.
Meme Coins Bounce Back After Broad Crypto Dip
Granted, the whole crypto market suffered a decline recently, but meme coins had it the worst.
If we go back a week, we can find one of the reasons meme coins are doing so well on CoinGecko.
Namely, on February 27, the U.S. Securities and Exchange Commission (SEC) declared that meme coins are not considered securities or financial instruments. This official word likely created a more favorable regulatory situation, leading to more investment and activity in the meme coin market.
Related: SEC Declares Meme Coins Are Not Securities, Clarifies Regulation
SEC’s Stance May Fuel Further Meme Coin Growth, But Risks Remain
Of course, it should be mentioned that without clear regulation, the chance of illegal activities, like scams and artificially high prices, increases.
Still, this development might be a good sign for the crypto market across the board; how meme coins do could sway how people generally feel about cryptocurrencies.
In addition, the SEC’s clarification on meme coins not being securities provides a clearer regulatory framework, which may lead to the introduction of new products and services related to meme coins, further integrating them into the broader financial ecosystem.
Unexpected Turnaround for Meme Coins?
Taking into account it was reported last week that daily launches of meme coins have notably dropped on Pump.fun, this is perhaps an unexpected turn of events. Alternatively, it could just mean a general problem with Pump.fun.
Then again, after falling below $80k, Bitcoin has surged to over $90K again, and a good deal of cryptocurrencies followed suit. Typically, when the top crypto does well, others tend to follow, and meme coins likely benefited from this trend too.
Related: Altcoin Narratives Dominate: DeFi, L1s, AI Agents & Memes Fuel Crypto Rally
Even so, the meme coin category continues to be a dynamic segment of the cryptocurrency market, with rapid fluctuations and a lot of trading activity. As such, one should always remain vigilant.
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