Memecoins PEPE and WIF are spearheading a notable rally in the cryptocurrency market, diverging from the broader market's 1.41% dip by posting sector gains of 7.28%, lifting the memecoin market cap to approximately $71.14 billion. Specifically, PEPE has surged 77% month-to-date, while WIF has significantly outperformed with a 130% gain within the same period. Key price movements occurred between May 9 and May 17, with WIF reclaiming the $1 mark after a notable 50%+ increase and PEPE pushing through its $0.000015 supply wall, both signs of strong accumulation and demand.
Despite some short-term retracements with WIF down 21.65% and PEPE down 13.68% on the week, smart money continues to accumulate these memecoins. Whale activity remains strong, including a large withdrawal of 420 billion PEPE tokens to off-exchange wallets and increased token holdings in top WIF wallets exceeding 10,000 tokens. This accumulation suggests confidence in the memecoin sector, which historically precedes phases labeled as memecoin "supercycles," where speculative capital rotation moves from Bitcoin into high-risk, high-reward meme assets.
The memecoin-driven rally mirrors earlier successes like Dogecoin, supported by active decentralized communities and strategic whale transactions. This momentum has also contributed to an 18% increase in overall memecoin market capitalization amid increased social media attention. While Bitcoin faced liquidity squeezes, causing a 3.21% intraday pullback, selective accumulation of memecoins persists, signaling renewed community enthusiasm and market activity centered around PEPE and WIF.