Social media buzz around memecoins has surged, matching the rise in market capitalization, indicating a return of risk appetite in crypto. Memecoins have seen strong gains recently, with a speculative rally pushing the market value up, catching traders’ attention. Memecoin transaction volumes spiked 300% in the last month, settling around $5.22 billion on Thursday.

The memecoin market cap has rebounded from $35 billion to $45 billion, with transaction volumes spiking from $2.17 billion to $8.7 billion before settling. The rebound is driven by positioning resets and renewed retail participation, but memecoin rallies remain vulnerable to sharp reversals once flow slows.

Memecoins are seen as a temperature check for risk appetite in crypto, indicating whether the market is comfortable with risk. Altcoins running while Bitcoin remains stable suggests capital is moving further out on the risk curve, potentially leading to a correction for unchecked bulls. Bitcoin has been trading between $90,697 and $92,847 in the last 24 hours.

While traders have shown a regained risk appetite, both experts warn it could be short-lived. Any escalation in geopolitical tensions or policy shocks could reverse risk sentiment quickly. Macro conditions have improved, but enthusiasm may be front running ahead of fundamentals, indicating hope rather than conviction in the current market movement.

Read more at CoinTelegraph: Memecoin Social Buzz Could Signal Renewed Risk Appetite