- The market capitalization of cryptocurrency has decreased by 1.3%, now totaling $2.9 trillion on Tuesday, as market indicators signal a shift in capital towards memecoins.
- The memecoin market has surpassed a valuation of $62 billion, showing a 9.2% increase in the past 24 hours.
- Former President Trump’s strong backing of the official TRUMP token introduced at the inauguration has rekindled investor enthusiasm for memecoins this week.
Bitcoin market updates:
- On Wednesday, Bitcoin’s price fell by 2%, landing at $86,000 after another failed attempt to break through the $90,000 resistance level.
- This decline in Bitcoin outpaces the broader 1.3% drop in the overall cryptocurrency market, indicating that investors may be reallocating funds from BTC to alternative coins.
- Bitcoin ETFs continued their buying trend on Tuesday, with an additional inflow of $26.8 million.
Since March 14, Bitcoin ETFs have experienced eight consecutive days of inflows, totaling over $887.47 million during this timeframe.
On Tuesday, BlackRock announced the launch of its inaugural Bitcoin exchange-traded product in Europe, with net assets for the IBIT BTC ETF currently around $50.8 billion.
Many observers expect this move by BlackRock to heighten institutional interest in Bitcoin.
Altcoin market updates: SUI and Polygon rise as traders focus on mid-cap assets and memecoins
Boosted by positive momentum from the recent US Federal Reserve rate pause, altcoins drew substantial inflows at the start of the week. However, as the market surpassed the $3 trillion threshold, bearish resistance emerged. Bitcoin’s price consolidation below $90,000 has led to a significant reduction in market inflow intensity over the past 24 hours.
Crypto market performance, March 26
Instead of withdrawing entirely, traders seem to be methodically moving their assets toward sectors with compelling narratives and niche assets that demonstrate significant growth potential, avoiding Bitcoin and leading altcoins.
Ripple (XRP), Solana (SOL), and Ethereum (ETH) have all lagged behind, reporting losses between 1% and 3% at the time of writing.
In contrast, SUI and Polygon have stood out among the top 30 assets, each gaining 3% and 5%, respectively.
Chart of the day: Trump’s endorsement propels memecoin sector valuation past $62 billion
The stagnation of Bitcoin’s price around the $90,000 level indicates that investors are reallocating their capital towards alternative assets. However, after Trump reiterated his support for the $TRUMP token on Monday, the memecoin attracted the largest share of capital inflow while leading assets consolidated.
Memecoin sector performance
This trend is reflected in the chart above, showing a 9.2% rise in the total market capitalization of memecoins, now exceeding $62.5 billion. The leaders among the top memecoins include:
- Dogecoin (DOGE): Currently priced at $0.20, DOGE has seen an 8.6% increase in the past 24 hours and an 18.6% rise over the past week, bringing its market cap above $30 billion.
- Pepe (PEPE): Priced at $0.0000089, PEPE has surged by 12.8% over the last day and 20.3% in the past week, reflecting a growing speculative interest among traders.
- Shiba Inu (SHIB): Trading at $0.000015, SHIB has experienced a daily jump of 12.8% and a weekly gain of 19.1%, with its market cap approaching $9 billion.
While Bitcoin and major layer-1 assets like ETH, XRP, and SOL are all seeing declines on Wednesday, the uptick in memecoin prices indicates that investors may have increased confidence since the Fed’s recent rate pause, sparking an interest in high-risk assets. It remains uncertain whether this positive sentiment will endure or if Bitcoin’s stasis will lead to a broader market correction in the coming days.
Crypto news updates:
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SEC concludes investigation into Immutable without charges
The US Securities and Exchange Commission has officially closed its investigation into the Australian cryptocurrency firm Immutable, choosing not to file any charges.
The company, which had previously received a Wells notice concerning potential violations of securities laws, hailed this decision as a significant victory for digital ownership within the gaming industry.
This action aligns with a broader trend of the SEC dismissing cases against major crypto companies in recent months.
Firms such as Robinhood, Uniswap, and Ripple have all experienced a reduction in regulatory scrutiny since the transition to the current SEC leadership.
This shift comes as the agency progresses towards clearer regulations for crypto, moving away from the strict enforcement seen under former SEC Chair Gary Gensler.
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Fidelity to launch US Dollar-pegged stablecoin and Ethereum-based fund share class
Fidelity Investments plans to introduce a stablecoin pegged to the US Dollar, along with an Ethereum-based share class for its Dollar money market fund.
The stablecoin will be issued via Fidelity Digital Assets as part of the company’s ongoing expansion into blockchain-based financial offerings.
The Ethereum-based ‘OnChain’ share class aims to improve transaction tracking for the Fidelity Treasury Digital Fund.
These initiatives form part of Fidelity’s broader strategy to adapt to an increasingly favorable regulatory environment for crypto assets.
This positions Fidelity among a growing number of leading financial institutions that are integrating blockchain technology into conventional finance.