Meme coin trading volume surges to a two-year high in a sign of caution for Bitcoin (BTC) bulls

Trading volume in meme coins, or cryptocurrencies derived from internet memes and having no inherent utility, surged last week, a move reminiscent of frenzied activity seen ahead of previous bitcoin (BTC) market highs.

The crypto market saw $2.3 billion in meme coin trading volume last week — a six-fold increase from $387 million the previous week to its highest since May 2021, according to analytics-based tracker Dune by blockchain observer James Tolan.

The speculation mania was spearheaded by Pepecoin (PEPE), a frog-themed token launched in mid-April with a maximum supply of 420 trillion. PEPE surpassed the $1 billion market cap on Friday and eventually peaked at $1.82 billion, a stunning feat for a three-week-old meme cryptocurrency. At press time, PEPE’s market cap was $931 million per coingecko.

The PEPE craze also fueled speculation on other low-cap tokens like DINO, WSB, CHAD, and 4TOKEN, which are up several hundred percent over the past two weeks.

Historically, speculation mania in non-reputable cryptocurrencies has predicted major market spikes or bearish reversals in Bitcoin, the leading cryptocurrency by market value.

Bitcoin was trading near $27,970 at press time, down 2% on the day despite weakness in the dollar index (DXY). Bitcoin typically moves in the opposite direction of the dollar index, which measures the greenback’s exchange rate against major currencies, including the euro.

The DXY briefly bounced to 101.75 on Friday after the release of surprisingly stronger US jobs data, but has since fallen back below 101.20.

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