Dogecoin, Shiba Inu, PEPE, Bonk, Dogwifhat, and Floki begin recovery amidst Ethereum ETF optimism

• Meme coins DOGE, SHIB, PEPE, BONK, WIF, and FLOKI have started recovering from the recent correction in the crypto market. 
• BONK extended gains by over 17% in the last 24 hours, while PEPE ralliesd 13%, per CoinGecko data.
• Legal expert says that the SEC is likely to be drawn to meme coins, the most profitable crypto category in Q2 2024.

Meme coins added 8% to their market capitalization in the last 24 hours amidst a market-wide recovery in crypto. The top five meme coins in the category have started their recovery, as seen by the 24-hour gains on CoinGecko. 

Dogecoin (DOGE), Shiba Inu (SHIB), Pepe (PEPE), Bonk (BONK), Dogwifhat (WIF), and Floki (FLOKI) started their recovery, posting between 1% and 17% gains in the past 24 hours.

Ethereum holders are awaiting the Securities and Exchange Commission’s (SEC) approval on the investment product. ETH traders are optimistic and this is one of the market movers that has catalyzed a recovery in Ethereum-based meme coins and related assets in the past 24 hours.

Meme coin narrative is not dead: DOGE, SHIB, PEPE, FLOKI, BONK, WIF recover

Meme coins added between 1% and 17% to their value in the past 24 hours as Bitcoin recovered from the recent correction. Bitcoin sustains above $57,000 on Tuesday as meme coins extend gains and traders slowly turn profitable on positions that were underwater for the past week. 

Coinglass data shows that Open Interest (OI) in Dogecoin increased by 2.37% on Tuesday, the highest increase in OI among top meme coins. 

Bonk's value increased by over 20% in the past 24 hours, as seen on CoinGecko. Reports from McKinsey show that meme coins were the most profitable category in crypto in Q2 2024. While the sector may have lost its luster during the correction, it is making a swift recovery this week.

Meme coin price as seen on CoinGecko

While meme coins continue to attract investors and drive interest among market participants, a legal expert believes they may soon capture the attention of US financial regulators. 

Legal expert says the SEC may turn to meme coins for securities law violations

A Cointelegraph report shows that David Chung, Creo Legal’s founding director, says: “Nothing gets to the SEC faster than shilling a meme coin.” Chung is likely referring to celebrities and influencers and their interest in meme coins in the ongoing crypto cycle. 

The legal expert believes that the Securities and Exchange Commission (SEC) could potentially go after celebrities for selling unregistered securities without an appropriate license. Liam Hennessy, partner at law firm Clyde & Co., says that celebrities had a difficult time in previous crypto cycles for “touting” crypto projects.