In recent days, a surprising trend has been observed in the cryptocurrency market: meme coins have become the growth leaders compared to the rest of the market.

Tokens such as Pepe (PEPE), Floki (FLOKI), Dogecoin (DOGE) and Shiba Inu (SHIB) have risen significantly in price, attracting the attention of both investors and traders.

The sudden surge in popularity of meme coins can be attributed to the unexpected return to social media of Keith Gill, also known as "Growling Kitty." Gill, who gained notoriety for his role in the 2021 GameStop short squeeze, posted a cryptic meme on his social media after a three-year hiatus. This single post was enough to reignite interest in meme-related investing in both the stock and cryptocurrency markets.

As a result of Gill's return, the meme coin sector saw a noticeable increase in trading volume and market capitalization.

According to CoinGecko, PEPE, FLOKI, DOGE and SHIB were among the top gainers over the past 24 hours, with price increases ranging from 5% to 10%. This growth comes despite the broader cryptocurrency market remaining relatively stable, with Bitcoin (BTC) and Ethereum (ETH) seeing minimal price movements.

Interestingly, while some of the more well-known meme coins, such as DOGE and SHIB, have benefited from renewed interest, it is the new meme coins that are seeing the most significant gains.

Tokens like PEPE, MAGA, etc. have become the focus of traders looking for high volatility and profit potential.

However, not all meme coins benefit equally from current market sentiment. Popular tokens such as DOGE and SHIB, despite recent price increases, appear to be facing resistance at key levels. Analysts speculate that these established meme coins may find it difficult to overcome these barriers as market participants become more attracted to newer, more speculative tokens.

The rise of meme coins has not gone unnoticed by market analysts who are closely monitoring the situation. Some experts believe that the current rally in meme coins may be short-lived as it lacks the fundamental driving forces needed for sustained growth.

They argue that the hype surrounding these tokens is primarily driven by social media sentiment and fear of missing out (FOMO), rather than any intrinsic value or technological innovation.

The current economic environment, characterized by higher inflation rates and a weakening labor market, could pose problems for purely speculative assets such as meme coins.

In the past, stimulus checks and low interest rates fueled an investment frenzy in cryptocurrencies and meme stocks. However, as economic conditions tighten, analysts warn that a similar collapse could occur as investors become more risk-averse and focus on assets with stronger fundamentals.

Despite these concerns, the meme coin market continues to attract attention and generate significant trading volumes. As long as social media sentiment remains strong and influencers like Keith Gill continue to engage with the community, it is likely that meme coins will continue to experience short-term price fluctuations.

Despite their speculative nature, meme coins continue to play a significant role in the cryptocurrency market. They often serve as a barometer of retail investor sentiment and can drive significant trading volumes.

In the recent surge, meme coin-related segments have outperformed other altcoins, with only AI-related cryptocurrencies posting greater gains.

Unlike cryptocurrencies like Bitcoin and Ethereum, which are built on a solid technological foundation and have clear use cases, meme coins lack fundamental backing.

This makes them highly dependent on market sentiment and trends, which can change quickly.