Memecoins Spark Volatility as Bitcoin Drives Rally

The recent surge in memecoins has raised questions about what drives their volatility.

According to PrimeXBT Insights, the September rally saw PEPE jump 22.2%, Dogecoin rise 13.8%, and WIF add 17.7% in a single session.

The rally was driven by stronger Bitcoin prices, heavy short covering, and a broader return of risk appetite.

Memecoins tend to behave differently from assets that trade based on earnings, cash flows, or major protocol upgrades.

Price moves are often driven more heavily by attention, volume, and market sentiment.

For established and newer memecoins, trading activity remains a crucial factor in determining their price movements.

PrimeXBT offers Crypto Futures for WIF, DOGE, and PEPE, allowing traders to take long and short positions as market conditions change.