In the absence of a strong catalyst driving large caps cryptos like bitcoin and ether, traders are once again flocking to memecoins. This time around, it's a token called HarryPotterObamaSonic10Inu that's leading the pack.

Launched in May, HPOS10I is a memecoin inspired by a backpack discovered in a Netherlands shop covered with a mix of unrelated logos and words. Calling itself "The People's Bitcoin," it uses the ticker "BITCOIN" and is now the seventh largest memecoin by market cap after rallying 30% in the past 24 hours, according to CoinGecko.

A HPOS10I community spokesperson attributed the token's recent success to "the collapse of the influencer coin meta." They underscored that a new memecoin paradigm is developing, "one that is dependent on community creativity and marketing, not utility or one particular personality."

A website for the token with a market cap now nearing $150 million features a whitepaper, and dozens of memes. A listed account on the social network formerly known as Twitter appears to be suspended. 

A HarryPotterObamaSonic10Inu meme featuring the backpack the inspired the token.

Shibarium mainnet launch is imminent

Among other memecoins, Shib gained after the token's social media account hinted at the imminent launch of Shibarium at this week's Blockchain Futurist Conference  in Canada. Shibarium is a layer 2 memecoin ecosystem built on Ethereum and touted as the fulfillment of founder Ryoshi's vision.

The memecoin jumped 16% in the past week, while pepe increased 25% in the same period, according to CoinGecko.

Kaiko Research

Shiba inu has surged more than 25% since July 1

A former BSC Dogebonk community spokesman said the reason for the latest memecoin rally could be because people are "financially bored."

"There are very few new retail investors coming into the space, and those still remaining active are at this point true believers. Most of them have by this point probably packed their large cap bags and are now waiting for changes in macroeconomics and applications to start working for those serious bags to take off," he told The Block.

Trade volume for blue-chip cryptocurrencies fell after the Securities and Exchange Commission postponed a decision on the proposed ARK 21Shares spot bitcoin ETF on Friday. Conversely, memecoin trade volume is up almost 10% in the past 24 hours.

The total market cap of the top ten memecoins is now worth $18.3 billion, according to CoinMarketCap data. That's similar in size to the combined market cap of Cardano and Solana, which is approximately $20 billion.