The memecoin market is showing signs of a potential supercycle as speculative capital continues to flow into high-risk assets. One of the standout performers in this sector is Shiba Inu (SHIB), which has a history of experiencing parabolic rallies driven by speculative interest and liquidity surges. Despite major altcoins struggling under the dominance of Bitcoin, memecoins have seen a 6% increase in market capitalization. SHIB, in particular, has displayed impressive performance during Bitcoin’s range-bound phases, benefiting from speculative capital inflows.
During early March 2024, SHIB saw three consecutive higher highs, each resulting in a more than 30% intraday surge following a breakout from a prolonged accumulation phase. This pattern suggests the potential for explosive upside volatility in SHIB once again, as speculative interest in memecoins continues to grow. The market dynamics have shifted, with memecoins showing signs of decoupling from broader market flows and positioning themselves as speculative assets during risk-on market cycles.
The catalyst for a potential memecoin supercycle could lie in the decreasing exchange reserves of SHIB across both spot and derivatives markets, indicating a tightening supply dynamic. Additionally, 80% of SHIB’s total supply is now under long-term holder (LTH) control, suggesting strong accumulation and reduced sell-side liquidity. This consolidation around $0.00001230 on the daily timeframe and the range-bound structures of high-cap memecoins further support the narrative of a sector-wide liquidity reaccumulation phase.
As market structure dynamics and on-chain analytics point towards the possibility of a memecoin supercycle in Q2 2025, monitoring liquidity flows, open interest, and exchange reserves will be crucial in distinguishing sustainable momentum from short-term hype. With tightening supply, increasing LTH dominance, and rising speculative inflows, memecoins are expected to outperform traditional altcoins in the coming months. Investors are advised to keep an eye on the memecoin market for high-volatility opportunities in the near future.
