Memecoins
WIF, BONK and POPCAT tumble
- After dominating the market for weeks, Solana memecoins lost momentum, with Dogwifhat (WIF) and BONK losing almost 3% while Popcat lost 4%.
- Despite the decline, memecoins remain a risky but lucrative investment, with several traders betting on some of these tokens generating millions of dollars in profit.
Memecoins have had a stellar season, with some surging over 1,000% in the first five months of the year. However, after leading In the market, the sector has lost some of its momentum and over the past day many are in the red, with Solana memecoins taking a bigger hit than their peers.
Solana’s largest memecoin, Dogwifhat (WIF), fell 3.6% over the past day to trade at $3.25 at press time. Despite the decline, it is still up 7.5% for the week and 19% for the month. At $3.253 billion, WIF is the fourth largest memecoin after DOGE, SHIB and PEPE.
Despite its momentum slowing, one analyst believes that WIF is poised to break out and reach new highs. He compared WIF’s price movements to those of LUNA in 2021. While LUNA would eventually collapse and become one of the crypto market’s worst nightmares, it was one of the most explosive tokens to the time.
The analyst said:
I remember being bullish on Luna as it held a multi-month trendline, posting higher lows before eventually rising from $30 to $100. It wouldn’t surprise me if we saw a similar structure play out on WIF in hopes that it could potentially return to the higher side.
As the chart below illustrates, the analyst believes that the token will reach above $6 in the coming weeks. This would be a new all-time high, putting WIF’s market capitalization at over $6 billion and placing it among the top 20 cryptos.
Solana Dip Memecoins
Beyond WIF, other Solana memecoins have seen slower price action. BONK, Solana’s second largest, fell 2.3% to trade at $0.00003342 for a market cap of $2.2 billion. POPCAT fell 3.7% to trade at $0.3925.
Book of Meme (BOME), third in Solana, managed to stay in the green, gaining 2% over the past day. Cat in a dogs world (MEW) was among the big gainers with 8%.
Overall, memecoins had a slow weekend. DOGE lost 1%, while Shiba Inu lost 2%. Floki and Pepe each lost around 3%.
Despite the declines, memecoins continue to be extremely popular among traders. This is because they tend to be very volatile and can rise much faster and higher than most other tokens.
For example, Lookonchain recently revealed that a trader spent less than $6,000 to purchase over six million WIF tokens in December last year. This stash generated $1.6 million in profit, and he still holds over 1.4 million tokens, worth $5.5 million at current prices. The trader sells every time the token increases.
