MemeCore (M) is testing investor optimism, after the EVM-compatible Layer-1 (L1) blockchain climbed back above $0.80 in early September. The move lifted its market capitalization close to $900 million.
Yet beneath the surface, several signals suggest that the latest rally may not carry the same strength as July’s surge.
MemeCore Market Cap Rebounds, But Key Metrics Lag
The recent rebound marks MemeCore’s strongest recovery since mid-summer, when the M price briefly soared on speculative hype.
However, this time around, trading activity tells a different story, with daily volume remaining subdued compared to July’s rally. This raises concerns that the current price momentum lacks the depth of fresh on-chain demand.
The divergence between market cap gains and trading activity could prove significant for a project still in its early stages. Without stronger participation, MemeCore risks repeating the boom-and-bust pattern that has characterized previous rallies.
Another factor weighing on investor sentiment is token supply. Only 14% of MemeCore’s total supply has been released into circulation, meaning the unlocking process is ongoing.
As more tokens enter the market, selling pressure could intensify, particularly if trading volumes fail to expand in tandem. Supply overhang is a familiar challenge for young blockchains, where token releases often test early gains.
Unless the project can match supply growth with genuine demand, short-term volatility may remain a constant feature of MemeCore’s trajectory.
Community Growth Shows Underlying M Price Strength
Despite these headwinds, there are signs that MemeCore is building a durable base of support. Since the start of the year, nearly 4 million unique addresses have interacted with the network.
That adoption scale highlights the community’s belief in MemeCore’s growth potential. If engagement translates into sustained ecosystem activity, it may provide a foundation for long-term value.
As an EVM-compatible Layer-1, MemeCore is positioning itself as a meme-driven cultural play and a serious infrastructure contender.
However, whether this dual identity is a strength or a liability will depend on how the project balances hype cycles with real-world utility.
The return toward a $1 billion market cap marks an important psychological milestone for MemeCore. Yet the lack of trading momentum and the looming supply unlocks mean investors should be cautious about extrapolating the rally into a longer-term trend.
It aligns with a recent analysis, where experts speculated against the MemeCore price rally despite its surge.
BeInCrypto reported that futures traders cited bearish fundamentals, including negative funding rates and declining capital inflows.
Nevertheless, if on-chain activity and trading volumes can rise in parallel with community growth, MemeCore could shed its speculative reputation. Until then, September may be another test of whether hype alone can sustain billion-dollar valuations.
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