Neiro, a rising memecoin, has defied the broader bearish crypto market trends, climbing over 100% in five days and marking a 5000% surge from its September low.

Despite the ongoing market downturn, which has left major cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) in the red, Neiro has emerged as a standout performer. The meme coin rallied another 10% in the last 24 hours, trading at $0.001834 at the time of writing, far exceeding its lowest price level of September.

This price action has drawn significant attention, particularly given the current market conditions where bearish sentiment is dominating.

Neiro’s (NEIRO) rally is backed by a substantial increase in daily trading volume, which has surpassed $881.8 million. This figure was primarily driven by activity on exchanges such as XT.COM, WhiteBIT, and Binance. 

Neiro’s market cap has been on a wild ride, jumping from just $15 million in mid-September to a whopping $771 million, putting it just 29% shy of hitting the $1 billion mark. If this happens Neiro will join other high-profile memecoins like Popcat (POPCAT), a Solana-based token that recently hit a $1 billion valuation.

Further, the meme coin’s open interest has also hit record highs. Data from CoinGlass indicates it has surged to $196 million, a significant jump from its monthly low of $45 million. An uptick in futures market activity typically means traders are ramping up leveraged positions on the token, likely betting on more gains or gearing up for some serious volatility ahead.

Whale accumulation and market manipulation concerns

While Neiro’s surge has excited many retail investors, concerns are growing over the concentration of its supply in the hands of a few large holders, or “whales.” Data from CoinCarp shows that the top 10 holders control more than 65% of Neiro’s total supply. 

This level of concentration has sparked fears of market manipulation, as these big players could potentially have a strong influence on the token’s price.

Commentators have also noted that major algorithmic trading firms, like Winterminute and GSR, have been quietly accumulating Neiro. This has raised worries that Neiro’s rapid rise may be driven by a handful of key players rather than widespread retail interest. 

NEIRO’s allocation contrasts that of other memecoins like Popcat (POPCAT) which has a more decentralized supply, with its top holders controlling just 17% of the total supply.

Neiro’s rally is part of a larger surge in memecoins this year. According to CoinGecko, the total market cap of all tracked memecoins now exceeds $52 billion.

While established tokens like Dogecoin (DOGE) and Shiba Inu (SHIB) continue to dominate the space, newer entrants such as Neiro, Popcat, and SPX6900 have climbed the ranks in recent months. For instance, Popcat, which launched in December, has already reached a $1 billion valuation, while SPX6900 stands at $574 million.

U.S. spot Bitcoin exchange-traded funds recorded their second consecutive day of net outflows on Oct. 9, with $30.59 million exiting the funds.

According to data from SoSoValue, 12 spot Bitcoin ETFs extended their outflow streak to a second day, with net negative flows of $30.59 million. All outflows came from ARK 21Shares’ ARKB, which saw $44.47 million leave the fund, continuing its negative trend for the second consecutive day.

These outflows were partially offset by BlackRock’s IBIT, which reported inflows of $13.88 million on the same day, marking its second day of inflows. Over the last two days, IBIT has seen a total of $137.5 million enter the fund. Notably, IBIT, the largest ETF by net assets, has recorded net inflows of $21.71 million since its launch.

While flow data for Bitwise’s BITB was not updated at the time of writing, the remaining nine Bitcoin ETFs remained neutral for the day. Cumulatively, U.S. spot Bitcoin ETFs have drawn in a net total of $18.68 billion since their inception.

Despite these mixed flows in Bitcoin ETFs, the broader cryptocurrency market struggled on Oct. 9. Bitcoin (BTC), which began the day trading above $62,000, quickly slid to a daily low of $60,541, exacerbating concerns of continued volatility.

The dip in price led to the liquidation of over $40 million in Bitcoin long positions, further dampening market sentiment. Across the crypto space, liquidations of both long and short positions totaled $162.22 million within the last 24 hours, per data from CoinGlass. Bitcoin was still down 2.2%, exchanging hands at $61,031 at press time.

Spot Ether ETFs see no activity

In contrast to Bitcoin, the spot Ethereum ETFs saw a quiet day. According to SoSoValue data, the nine spot Ethereum ETFs in the U.S. recorded zero inflows on Oct. 9, after registering outflows of $8.19 million on the previous trading day.

Ethereum’s (ETH) price also fell 1.8% to $2,402 at the time of reporting, as investors remained cautious amid a 3.3% drop in the global crypto market which stood at $2.23 trillion when writing.

In contrast to Bitcoin’s positive ETF flow, Ethereum ETFs have been facing persistent outflows, reflecting a differing trend in market demand.

CryptoQuant reports that, after 79 days of ETF trading, Ethereum ETFs have seen $4.1 billion in total net outflows in contrast to the Bitcoin ETFs which have seen $29.1 billion in total net inflows. This stark contrast with Bitcoin’s performance suggests that investor sentiment and institutional interest may be skewing more favorably towards Bitcoin in the current market environment.

However, according to Bitwise CIO Matt Hougan, the slow start of spot Ethereum ETFs is largely due to traditional investors still getting accustomed to the crypto market when the products were launched. He believes the timing was too early but expects Ethereum ETFs to gain momentum, potentially reaching $20 billion in assets within a year as interest grows.