Memecoin Market Update: Temporary Stagflation Following Powell’s FOMC Speech
The memecoin market continues to chart its own volatile path in the wake of this week’s highly anticipated FOMC announcement and Fed Chair Jerome Powell’s speech, which confirmed that no interest rate cuts are on the horizon—at least for now. While traditional markets reacted with a mix of caution and recalibration, the memecoin sector seems to have entered a phase of temporary stagflation: market cap and volume are inching up, but prices are largely stagnant among the large caps, with most real movement concentrated in smaller, speculative tokens.
Market Snapshot
As of the latest data, the total memecoin market cap has increased by 1.6% to $52.97 billion, while daily trading volume rose 8.8% to $4.92 billion. These are healthy signs on the surface, but it’s worth noting that these figures are similar to levels prior to the FOMC announcement, indicating a lack of strong post-announcement breakout or breakdown.
This muted response might be attributed to broader uncertainty in crypto markets, as traders and investors wait to see whether macroeconomic tightening will persist deeper into 2024. Until then, memecoins—known for thriving in speculative and liquidity-rich environments—may struggle to regain the intense attention seen during their last explosive cycle.
Large Cap Memecoins: Consolidation Continues
Major players in the memecoin space are showing flat to mild upward momentum, signaling a lack of conviction among large-volume traders. Here’s a quick glance:
$DOGE: +0.24% – The OG memecoin holds its range, with low volatility and modest interest.
$SHIB: +0.42% – Shiba Inu follows closely, showing mild accumulation.
$PEPE: +3.85% – The standout performer among the big caps, PEPE is quietly building strength.
$TRUMP: -0.61% – Slight correction, possibly due to event-driven overextension.
$BONK: -0.12% – Still within its sideways pattern, offering no clear breakout signs.
The takeaway here is simple: liquidity is not yet strong enough to power large-scale moves in these well-capitalized tokens. That means unless there’s a shift in sentiment or a jolt in market participation, we are likely to see more range-bound action.
Small Caps Steal the Show
The real momentum is brewing beneath the surface, where small- to micro-cap memecoins are posting double-digit gains and capturing the imagination of risk-tolerant traders.
$BAN: +28% – Leading the charge with a strong breakout and growing attention on social media.
$MOG: +25% – Another surprise performer, attracting volume from retail punters.
$POPCAT: +15% – Continuing its uptrend, proving memecoin narratives still work at the micro level.
These smaller tokens are outpacing larger peers by a wide margin, a trend that could persist if overall market liquidity stays shallow and speculative capital continues to prefer high-volatility plays.
On the Flip Side: Today’s Top Memecoin Losers
Where there are big gainers, there are always sharp losers in the memecoin jungle:
$HOUSE: -19% – A brutal correction likely fueled by thin liquidity and early exiters.
$GORK: -18.3% – Rapid fall after a short-lived pump; another reminder of the risks.
$HIPPO: -15% – Dropping as fast as it rose, possibly due to lack of narrative or hype.
These declines underscore the fragile nature of small-cap memecoins, where momentum can vanish as quickly as it appears.
What’s Next?
The memecoin market remains in a wait-and-see phase, balancing on the edge of renewed hype or further stagnation. Traders are now closely watching for signs of life from large-cap memecoins, which typically lead broader interest and liquidity back into the sector. Without stronger trading volume, however, major moves are unlikely.
Until we see that volume return, expect small- and micro-cap tokens to dominate, driven by short-term hype, community narratives, and pure speculative energy. This is where both the biggest opportunities—and the greatest risks—currently reside.
For now, the memecoin market remains alive, but breathing lightly. All eyes are on the next macro trigger that might tip the balance.
