Ethereum Momentum Fuels Meme Coin Surge While PENGU and PUMP Stumble

The winds are shifting in the meme coin market, with Ethereum (ETH) reclaiming dominance across institutional and retail markets.

Traders are rotating capital out of weaker narratives like PENGU (Pudgy Penguins) and PUMP (Pump.fun), and into tokens with stronger momentum and perceived fundamentals.

Ethereum’s Narrative Awakens Meme Coin Season

Some meme coins, including Floki Inu (FLOKI), Bonk Inu (BONK), and Fartcoin (FART) are posting double-digit gains. Meanwhile, others, including PENGU and PUMP, are recording losses.

More specifically, FLOKI leads today’s gainers with a 40% pump, followed by BONK (+16%), Fartcoin (+18%), and PEPE (+5%).

Meanwhile, DOGE and SHIB added 7% and 4.5% respectively. In contrast, PENGU and PUMP have fallen out of favor, plunging 8% and 21% as of the latest CoinGecko data.

Meme Coins Awaken Amid Ethereum Narrative. Source: Coingecko

The broader meme coin market cap is up 6%, nearing the $80 billion mark. It aligns with a recent BeInCrypto report, which indicated the early signs of a meme coin season in July.

Elsewhere, on CoinMarketCap’s altcoin season index, the altcoin trend is accelerating, suggesting capital is actively rotating away from Bitcoin.

Altcoin Season Index. Source: CoinMarketCap

This capital rotation, coupled with a surge in meme coins, accentuates the onset of the colloquial altcoin season. Data on TradingView shows the altcoin market cap at $1.42 trillion, the highest since early February.