Meme Coins Outperform BTC, ETH and SOL as Traders Rotate Their Holdings
The meme coin sector rose 12% on Tuesday, outperforming crypto majors, while the CoinDesk 20 Index is up 2.3% during the same period.
Meme coins have historically performed well when BTC, ETH, and SOL trade in a range near local highs.
Low liquidity trading pairs mean meme coins experience exaggerated peaks and troughs compared to crypto majors.
The $53 billion meme coin industry rose more than 12% on Tuesday, with companies like pepe {{PEPE}} and dogwifhat {{WIF}} up 22% and 25% respectively, according to CoinGecko data.
The rally comes after bitcoin {{BTC}} hit a one-month high of $65,000 before retreating to $63,000. The continued strong performance of meme coins suggests that traders are taking profits on higher market cap assets like BTC and ETH and diversifying those profits into more speculative bets.
The CoinDesk 20 Index (CD20), which measures the performance of large-cap tokens, is up 2.3% over the past 24 hours.
Several coins based on U.S. politics have been issued after presidential candidate Donald Trump was shot and injured at a rally in Pennsylvania on Saturday. Companies like America Coin (USA) and Super Trump (STRUMP) are up 204% and 43% since the shooting.#Binance #pepe⚡ $PEPE
