Robinhood's Meme Coin Addition Drives 16% POPCAT Rally

Robinhood's recent addition of three new meme coins—POPCAT, PENGU, and PNUT—to its trading platform has sparked a notable rally in the meme coin market. The listing of these Solana-based tokens has driven significant investor interest, despite broader market weakness. POPCAT, in particular, saw a price jump of 16%, with analysts predicting further gains. PENGU and PNUT also experienced price increases, indicating a mini rally within the meme coin sector.

POPCAT and Peanut the Squirrel [PNUT] topped Solana [SOL] memecoin daily performers on Friday, before the U.S market session opened. The upswing followed Robinhood’s listing of the memecoins, including Pudgy Penguins [PENGU] on 13 March. PENGU jumped by 26% after the update, but it erased the gains quickly. At press time, it was up 5% on the daily chart. From a Solana memecoin perspective, POPCAT was the best daily performer among the dominant ecosystem’s tokens. It doubled TRUMP’s 8% gains. Overall, the Solana memecoin’s market cap jumped by 4% following the relief bounce.

However, can this category of select performers maintain a winning streak into the weekend? Speculative interest, using Open Interest (OI) rates on the derivatives market for clues. TRUMP, PNUT, and POPCAT were among the memecoins with a massive surge in OI on the daily chart. TRUMP’s OI was up, while PNUT and POPCAT had, respectively. Interestingly, PNUT and POPCAT saw a double-digit jump in OI – A sign that market players were interested in the gems. From a volume perspective, the three Robinhood-listed gems were among the top 10 tokens with high trading volumes. PENGU, POPCAT, and PNUT could extend their gains if the trend holds into the weekend.

However, a closer look at POPCAT’s price chart revealed that it had to reclaim as support to extend the recovery. Otherwise, a rejection below the moving averages could dent the short-term bounce. In terms of sector performance comparison, the memecoin segment was down about this week and tied with the AI segment. Surprisingly, DeFi was the worst performer at 12% amid weak market sentiment.

The move by Robinhood to expand its crypto offerings is part of a broader strategy to compete with other major exchanges. The online brokerage, known primarily for its stock trading platform, has been investing heavily in crypto products. This expansion includes the addition of new meme coins and the launch of crypto futures trading. The decision to list these meme coins was driven by strong customer demand, as Robinhood Crypto's vice president and general manager noted that the company aims to offer what customers are asking for, as long as it can be done safely.

The regulatory environment has also played a role in this expansion. The appointment of industry-friendly leadership to key regulatory positions has created a more favorable climate for crypto trading. In February, the US Securities and Exchange Commission clarified that most memecoins do not qualify as securities, thereby reducing regulatory scrutiny. This regulatory reversal has allowed Robinhood to proceed with its crypto initiatives more confidently.

The listing of POPCAT, PENGU, and PNUT is not just a response to customer demand but also a strategic move to stay competitive in the rapidly evolving crypto market. As rival exchanges accelerate new coin listings, Robinhood's expansion into meme coins positions it as a key player in this growing sector. The addition of these tokens to its platform has not only driven investor interest but also highlighted the potential for further growth in the meme coin market.