The memecoins MOODENG, PNUT, and Goatseus Maximus (GOAT) have recently recorded significant increases, with triple-digit gains and highs not seen in months.
Despite a slight slowdown in the pace of increase, BeInCrypto consulted experts to understand the factors behind the recent advance of these cryptocurrencies.
What is behind the increase?
The appreciation movement occurred after a significant retraction in the crypto market in early April, when former President Donald Trump announced tariffs that negatively impacted the sector. Bitcoin (BTC) fell below the $80,000 mark, triggering losses in various cryptocurrencies. However, a slight recovery began to form in the following weeks.
From mid-April onwards, memecoins like MOODENG, PNUT, and GOAT began to gain traction. On May 8, these coins recorded consecutive highs and reached levels not seen since the beginning of the year.
MOODENG led the gains, with an appreciation of 771% in less than a week. GOAT increased by 257%, while PNUT accumulated a rise of 220%.
A turning point occurred on May 11, when Binance Alpha announced the listing of MOODENG and GOAT. Chris Duggan, senior marketing manager at ChainGPT, stated that this decision "...added fuel to the fire."
According to Duggan, the movement was driven by a combination of the initial enthusiasm of the community, the engagement of influencers and opinion leaders on X (formerly Twitter), in addition to the low liquidity of the assets. These factors created the ideal scenario for rapid appreciation.
"Social media not only amplifies—nowadays, it creates the trend. Coins can go from obscurity to global attention in a matter of hours thanks to some well-timed posts," Duggan told BeInCrypto.
However, he added that Binance's involvement further strengthened the momentum. Duggan stated that such exposure can quickly transform niche coins into popular assets.
"Initially driven by retail, but once smart money noticed, the rise intensified," he commented.
In addition to these factors, Dean Chen, an analyst at Bitunix, highlighted several important catalysts behind the rise of memecoins.
"The rise of MOODENG, PNUT, and GOAT was not caused by a single event, but was the result of a combination of capital rotation, market narratives, exposure on platforms, and overall sentiment," said Chen.
He explained that major memecoins like Dogecoin (DOGE) and dogwifhat (WIF) had already recorded significant increases at the beginning of the year. This ended up generating more cautious expectations from the market.
Cheap memecoins attract whales and retail investors
In light of this scenario, speculative capital began to concentrate on lower-cap memecoins, such as MOODENG and PNUT, which became the main targets for investors seeking opportunities. Chen noted that these coins tend to attract accumulation by whales when prices are still low. Once volatility begins to manifest, this triggers the so-called FOMO—fear of missing out—among retail investors.
The analyst also emphasized that the appreciation of these memecoins is strongly linked to market sentiment. With Bitcoin surpassing the $100,000 mark in May, risk appetite among investors increased, favoring a migration to highly volatile assets like memecoins.
"During bull market phases, memecoins usually exhibit high elasticity and room for speculation, making them popular targets for concentrated capital bets," Chen revealed to BeInCrypto.
Although the initial appreciation was significant, it also proved to be temporary. In mid-May, the increase in selling pressure led these coins to give back some of the accumulated gains. Still, they showed resilience and began a moderate recovery.
At the time of this report, the prices of MOODENG, PNUT, and GOAT remained 675.7%, 112.2%, and 237.9% above the lows recorded in early April, respectively.
Price Performance of Memecoins MOODENG, PNUT, and GOAT. Source: TradingView
The volatility of these cryptocurrencies raises doubts about the sustainability of their valuations. According to Chen, the migration of capital to new memecoins reflects a strongly speculative profile. He emphasized that, in the short term, this movement resembles a hype cycle driven by emotional factors.
Experts warn of speculative risks
According to the analyst, market participants are generally focused on quick gains. Thus, under the influence of narratives promoted by communities and amplified sentiment on social media, some low-cap tokens end up being driven by significant multiples in a short period.
"However, such hype often lacks solid fundamental support and long-term development strategies, making it prone to bubble formation. The cycle of price increases and declines tends to be very short, often completing an entire speculative round within three to seven days," Chen warned.
Chen also pointed out that this short-term bubble often exhibits several recurring characteristics. Many of these projects rely solely on viral content based on memes or eye-catching themes, without any practical application or technical advancement to support them.
According to him, it is common for the teams behind these initiatives to make quick withdrawals when prices spike, often coordinating large sales through internal wallets. This contributes to frequent cases of 'rug pulls' within the community. Additionally, the growth of collective interest tends to be explosive, yet brief, reinforcing the highly speculative nature of the current cycle.
"In fact, from a long-term perspective, the memecoin space has the potential to emerge from these high-volatility shocks with some projects demonstrating lasting viability," he commented.
Chen explained that memecoins with greater potential for longevity tend to present more structured narratives, strong community cohesion, and some level of technical development and market promotion capability. After the initial collapse of the bubble, these coins can emerge as true 'meme blue chips', becoming the main targets in the next phase of capital rotation.
He added that the current speculative movement should not be interpreted merely as a bubble, but also as a reflection of a shift in market preference for high-risk, high-return assets—especially in a bull environment, which tends to favor assets with greater volatility. Thus, Chen predicts that this dynamic may extend for a longer time.
The article 'Why did the memecoins MOODENG, PNUT, and GOAT skyrocket in May?' first appeared on BeInCrypto Brazil.
