Data from CoinGecko shows that the total market capitalization of memecoins has climbed in the last 24 hours, rising 2% to $66.6 billion. In comparison, the global crypto market capitalization has increased by a mere 0.8% over the same timeframe to rest at $3.31 trillion.
Meanwhile, Bitcoin (BTC), the largest cryptocurrency by market capitalization, has remained flat, hovering around $105,000, after dropping by 0.5% on the day. The overhead resistance at $106,000 remains stubborn for the pioneer cryptocurrency.
Memecoins Outperform the Crypto Market
Solana-based Dogwifhat (WIF) gained the most, adding 12.4% to its market value over the last 24 hours to trade at $0.9784 at the time of writing. Ethereum-based Pepe (PEPE) followed with 7.6% gains to trade at $0.00001260, and Bonk (BONK) came in third after rising 5.2% over the same period.
Performance of Top-Cap Memecoins. Source: CoinGecko
DOGE – the leading meme token by market capitalization – saw a 1.75% price ascent on the day, bringing its market cap to $29.2 billion. Notably, DOGE still accounts for nearly 44% of the memecoin sector’s total market share.
Its rival, SHIB, also recovered on June 2, up 2.8% on the day, increasing its market cap to $7.7 billion, cementing its position as the second most popular memecoin.
Let’s look at some of the reasons why memecoins are up today.
Strong Altcoin Market Structure
From a historical perspective, the bull market is usually driven by a rally in altcoins. As such, in line with the current recovery of memecoin prices, TOTAL3 – the total market cap of all cryptocurrencies excluding Bitcoin (BTC) and Ether (ETH)- has experienced a significant rise after its rally that began in mid-April.
The chart below shows that TOTAL3 has increased by 30% since the second week of April to $858.1 billion. This rise has led to the appearance of an ascending parallel channel on the weekly chart, as shown below.
Traders bought the dips as the relative strength index (RSI) on the weekly chart fell below the mid-line to 42 in early April at the height of Trump’s tariff-driven sell-off.
The RSI’s reading is currently in the positive region at 52, suggesting that trader interest in altcoins is increasing as the momentum picks up.
Total Crypto Market Cap Excluding BTC and ETH. Source: TradingView
Altcoins are still pursuing an extended uptrend, confirmed by TOTAL3’s continued upward movement inside an ascending parallel channel.
If TOTAL3 manages to overcome the strong resistance between $900 billion and $935 billion, it will rise to the upper boundary of the ascending channel at $1.02 trillion. If this happens, altcoins, including major memecoins, could continue rallying over the next few weeks.
On the other hand, a drop below the lower boundary of the channel at $842 billion will see the price drop toward the 50-day simple moving average (SMA) currently sitting at $775 billion. Losing this support will trigger massive sell orders that could see TOTAL3 drop toward the $700 billion psychological level.
Memecoins See an Increase in OI and Trading Volume
The rally in memecoins on June 3 was preceded by an increase in open interest (OI), with WIF leading the charge with a 13% increase in OI over the last 24 hours. POPCAT saw its IO jump by nearly 12% on the day to $157 million, more than $10 million higher than MOODENG’s $146 million in OI, which had increased by 11.9% over the same period. DOGE’s OI was standing at $2.1 billion, up approximately 1.3% over the last 24 hours.
Memecoin OI Chart. Source: CoinGlass
Open Interest refers to the total amount of pending derivative contracts that have not yet been settled. In a futures contract, for every seller, a buyer is required to settle the contract.
The chart above also revealed a notable increase in the daily trading volume of memecoins in the derivatives market, with MOODENG leading the jump by 102%. Overall, the daily trading volume of memecoins has risen 27% in the past 24 hours to $26 billion.
The rise in OI and trading volume for memecoins indicates bullish momentum in the market as leverage traders open more contracts in anticipation of price increases.
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