Riding the positive wave of Bitcoin’s price rise, altcoins and tokens from various ecosystems, as tradition dictates, are also aiming upwards. But there’s a special category of tokens that are purely for entertainment purposes and thrive solely on community love. Today, we’re talking about the explosive growth of memecoins.
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Solana Memecoin Turns $226K into $1.69M in 5 Days
Solanas BONK Cements Meme Status
The insanity of memecoins has led to trending coins like Pepe, Floki, Bonk, and others experiencing a massive surge in the past week. According to data provided by Santiment, on average, the volumes of these tokens have skyrocketed by over 3000% in seven days, as public interest and prices have wildly fluctuated, with many memecoins hitting new all-time highs (ATH).
Memecoin Mania
In the past week, the price of Pepe, based on Ethereum, has surged by over 370%. At the time of writing, it’s trading at 0.00000682 with trading volumes soaring into the billions. While Pepe ranks 44th in market capitalization, its trading volume currently places it at the eighth spot. In a mere two days, the market capitalization of Pepe has surged, doubling from $1.5 billion to a whopping $3 billion.
Floki has seen a 350% surge on weekly price charts, landing it in the 16th spot for trading volume. These memecoins, boasting three-digit growth over the past week, are relatively new compared to more established coins like Dogecoin and SHIB.
The leading memecoins from the last cycle have also shown bullish growth: DOGE recorded a weekly increase of 90%, while SHIB surged by 175%. Fun coin madness seems akin to the final bull run of 2021 when Dogecoin led the charge, fueled by the backing of Elon Musk.
Memecoin Tokens on Solana Are Breaking All Records
In the past week, shares of Bonk, based on Solana, have soared by 190%, trading near an all-time high of 0.0000345. The buzz around Bonk has also boosted sales of Solana Saga mobile phones. Since its launch, Solana Saga phone owners have received a whopping $30 million worth of memecoin giveaways. With the token’s price surge, users have seized the opportunity to cash in by buying the phone and selling the tokens.
Solana memecoin craze was already in full swing back in December: one trader turned $226,000 into over $1.6 million. From December 13th to 15th, the crypto trader bought over 19 million tokens of Dogwifhat (WIF), a dog-themed memecoin, as it debuted on the Solana network markets. As reported by the analytics firm Lookonchain, the trader acquired the tokens at an average price of $0.01137 each. Currently, the total value of the tokens fluctuates around $1.69 million, bringing the trader a profit of about $1.47 million within five days. Now that’s what we call making a profit!
The memecoin cycles and their price volatility have helped some investors rake in significant profits quickly. However, many others often end up losing a fortune. Some crypto veterans argue that memecoins poorly reflect the overall cryptocurrency market.
Most memecoins, which experience massive growth during bull runs, also fall into the category of tokens that subsequently face the sharpest declines, with some losing over 80% of their value compared to their peak.
It’s important to remember that not everything that glitters is gold, especially in the volatile world of fun coins. So, before jumping into the memecoin craze, take the time to assess the risks involved and consider whether the potential rewards are worth it.
