Bitcoin Halving Sparks Meme Coin Momentum Ahead of 2025 Altseason, Say Analysts

Meme coins, once dismissed as fleeting internet jokes, are now outperforming traditional tech-focused cryptocurrencies in 2025.

Meme coins outperformed traditional tech-focused cryptocurrencies in 2025, with greater resilience and investor interest, crypto analyst Altcoin Sherpa observed.

As reported by Benzinga, the analyst noted that while there are 10,000 coins and none of them can sustain attention forever, he suspects the bigger, “Lindy memes” will have better staying power than in the past.

He has gone back and forth on this over the years, but he thinks they’ll continue to broadly outperform the “tech” coins for the most part.

“Not necessarily saying they’re going to go higher in their alt/BTC pair, but coins like PEPE, BONK, WIF, Fartcoin, Floki — all of those should stick around for the most part,” Sherpa said.

The meme coin sector's value surged from $20 billion to over $120 billion in 2024, largely driven by retail investors and social media hype.

Moreover, established coins like Dogecoin (CRYPTO: DOGE) and Shiba Inu (CRYPTO: SHIB) maintained significant market presence, while newer entrants like Pepe and Bonk rapidly gained traction.

The rise of meme coins is closely tied to the current cryptocurrency cycle, particularly following Bitcoin's (CRYPTO: BTC) halving event in April.

Historically, such halvings reduce the rate at which new bitcoins are created, often leading to increased demand and price surges. This pattern typically results in heightened investor interest in altcoins, including meme coins, as traders seek higher returns.

Analysts like Matthew Le Merle, CEO of Blockchain Coinvestors, observe that after Bitcoin's price surges, capital often flows into altcoins.

"Once bitcoin has gone up three years in a row, a lot of bitcoiners have a lot of capital that they want to diversify, and they’re willing to move some of their capital into the altcoins," remarked Le Merle.

This trend suggests that 2025 could be a significant year for altcoins, with meme coins potentially leading the charge due to their strong community engagement and viral appeal.

However, some experts caution that the current cycle may differ from previous ones. CK Zheng, founder of ZX Squared Capital, predicts that Bitcoin dominance will decline as the crypto ecosystem expands, allowing altcoins to outperform.

"I think in the next bull market, we'll see a lot more capital flowing into the altcoins as Bitcoin’s dominance continues to decrease and the crypto ecosystem expands."

Despite this, the unique appeal of meme coins continues to attract investors, suggesting they may still play a prominent role in the evolving crypto landscape.

Still, this surge comes with growing scrutiny. A high-profile case involving Melania Trump's $MELANIA coin raised concerns about insider trading in the meme coin space.

On-chain data showed 24 wallets spent $2.6 million on the token just minutes before Trump's public announcement. The coin's price surged by over 5,000%, and many of these wallets exited within hours—cashing out nearly $100 million.

Unlike traditional cryptocurrencies, meme coins often move on hype and social momentum rather than utility or infrastructure. This environment creates opportunities for early actors to exploit timing, leaving latercomers with losses.

While such cases highlight the speculative risk tied to meme coins, they also underline the sheer power of attention as a driver in this asset class.

Despite these concerns, the popularity of meme coins shows no signs of waning. Their ability to capture public imagination and generate substantial returns continues to attract investors.

As the crypto market evolves, meme coins may play an increasingly prominent role, challenging traditional notions of value and investment in the digital age.

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This article is written with the assistance of AI.

The post Meme Coins Outperform Tech-Focused Cryptocurrencies As Investor Interest Remains Strong appeared first on Coin Edition.

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News data source: kdj.com

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