Memecoins
WIF, BONK and POPCAT Tumble
- After leading the market for weeks, Solana’s memecoins lost momentum, with Dogwifhat (WIF) and BONK losing nearly 3% while Popcat lost 4%.
- Despite the decline, memecoins continue to be a risky but profitable investment, with several traders betting on some of these tokens minting millions of dollars in profit.
Memecoins have had a banner season, with some rising over 1,000% in the first five months of the year. However, after first In the market, the sector has lost some of its momentum and many are in the red over the past day, with Solana’s memecoins taking a hit compared to their peers.
As of this writing, Solana’s largest memecoin, Dogwifhat (WIF), has fallen 3.6% to trade at $3.25. 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 slowing its momentum, one analyst believes WIF is set to break out and hit new highs. He compared WIF’s price movements to that of LUNA in 2021. Although LUNA would eventually collapse and become one of the cryptocurrency market’s worst nightmares, it was one of the most explosive tokens at the time.
The analyst stated:
I remember being bullish on Luna as it held a multi-month trend line, printing higher lows before breaking $30 to $100. It wouldn’t surprise me if we see a similar structure play out on the WIF in hopes that it could potentially move back towards the ‘high.
As illustrated in the chart below, the analyst believes that the token will surpass $6 in the coming weeks. This would be a new all-time high, which would bring WIF’s market capitalization to over $6 billion and place it among the top 20 cryptocurrencies.
Solana Memecoin Dept
In addition to WIF, other Solana memecoins have seen slower price action. BONK, the second largest in Solana, fell 2.3% to trade at $0.00003342 for a market capitalization of $2.2 billion. POPCAT fell 3.7% to settle at $0.3925.
Book of Meme (BOME), third in Solana, managed to stay in the green, gaining 2% on the final day. Cat in a dogs world (MEW) was among the biggest gainers with 8%.
Overall, memecoins had a slow weekend. DOGE lost 1%, while Shiba Inu lost 2%. Floki and Pepe lost about 3% each.
Despite the declines, memecoins continue to be very popular among traders. This is because they tend to be highly 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. That stash has yielded $1.6 million in profits and still holds over 1.4 million tokens, worth $5.5 million at current prices. The trader sells every time the token increases.
