It’s the memecoin season as the crypto world is flooded with memecoin frenzy!
The recent tweet by Elon Musk about the Pepe meme at X ignited a wave of enthusiasm among meme-based crypto enthusiasts.
Following Musks’s tweet, Pepe, a blockchain-based project witnessed a significant rise.
Musk’s tweet caused an interesting peak at Pepe coin’s open interest by 15.33% and its volume increasing by nearly 50%! Amazing, right?
The meme coin frenzy has recorded a price surge of meme coins among Pepe, Floki, Bonk, etc., over the past few weeks. The mentioned meme tokens witnessed a recorded price increase of over 500% and a nearly 3000% rise in trading volume.
So, what is a meme coin? What are the reasons that triggered a chain of optimism among across meme coins? Moreover, how do crypto experts view this surge of positivity?
Let’s find out!
What are meme coins?
Meme coins are cryptocurrencies named after widely mocked characters, individuals, or artworks.
The primary objective of meme coins is to strike humor and offer comic relief. Dogecoin, Shiba Inu, Pepecoin, etc. are some examples of meme coins.
Interestingly, meme coins hold little to negligible value, which may make them a risky investment choice for crypto investors.
Why the meme coin frenzy?
The spike in meme coins’ value recently has little to do with these coins themselves. Rather, it has a lot to do with Bitcoin and statements posted by Elon Musk.
Let’s discuss about the “Bitcoin effect” first. Bitcoin’s price has been growing exponentially ever since the Securities and Exchange Commission (SEC) approved spot Bitcoin ETFs in January 2024.
SEC’s decision resulted in a massive rise in the value of Bitcoin. At the time of writing this, Bitcoin is priced over $73. In fact, the price rise of Bitcoin is also a consequence of the upcoming Bitcoin halving event, scheduled to take place in April 2024.
It seems that the growing price of Bitcoin has resulted in what’s widely called “when one succeeds, others follow suit.” The exponential growth of Bitcoin’s value has impacted the prices of meme coins as well.
At the time of writing this, the price of Dogecoin is up by nearly 100% in the last month and Shiba INU’s price is up by nearly 200% in the last month.
The second reason is none other than the man himself – Elon Musk and his tweet! The crypto market analysts believe that the price of meme coins might have gotten a significant boost due to Musk’s recent tweet on the Pepe meme. His tweet on the Pepe meme gave a significant fillip to the Pepe meme coin’s price.
Here’s what Elon Musk posted using the Pepe meme –
What’s Next?
The recent meme frenzy has created a wave of opinion among crypto experts. According to Bloomberg, the current trading levels of meme coins match the trading volume witnessed before the last Crypto bubble burst more than two years ago.
With more investors inclined to invest in meme coin and the rising meme coin frenzy, there is no sign of meme coin’s price abatement. In fact, meme coins such as Dogwifhat and Pepe are gaining more popularity than Bitcoin.
What’s more concerning is that such meme coins, once speculative and volatile, are now trending among top cryptocurrencies in the crypto world! Such an unanticipated surge in the meme coin frenzy may cause a high risk of price volatility and investment risks.
Dessislava Aubert, a research analyst at Kaiko, stated that the recent meme coin frenzy may cause a crypto market expansion. However, Aubert also states that it is difficult to predict the consistency of the meme coin frenzy as “some of these tokens are increasingly driven by idiosyncratic factors and are less correlated with Bitcoin.”
4 Rising Meme Coins You Must Know About!
1. Pepe (PEPE)
Pepe is a meme coin that is inspired by the well-known Pepe Frog meme. It was launched on the Ethereum platform and pays homage to the viral internet meme.
Pepe coin has witnessed a nearly 10% rise in its volume and is now priced at $0.00001001.
Image Source: CoinMarketCap
2. Dogwifhat (WIF)
Dogwifhat gained massive sensation when launched on the Solana network. Over the week $WIF has witnessed remarkable growth, since its debut in November 2023.
Dogwifhat has experienced a staggering growth above 600% since last month and is priced at $3.31.
Image Source: CoinMarketCap
3. Floki (FLOKI)
Floki has transformed into a significant web3 project. The project consists of elements of Metaverse, decentralized finance (DeFi), and non-fungible tokens (NFTs).
FLOKI operates on both the Ethereum and the Binance Smart Chain and is popularly known as “The People’s Crypto”.
The price of FLOKI stands at $0.000276, which is over 700% more than last month.
Image Source: CoinMarketCap
4. Grok (GROK)
Grok is a meme coin inspired by the Grok AI project from X, Elon Musk’s company. Over the period, Grok has propelled itself as a promising AI-centric meme coin.
At present Grok is priced at $0.02062, which is an increase of over 400% in the last month.
Image Source: CoinMarketCap
Wrapping it Up!
With the soaring popularity and price of coins such as WIF, FLOKI, PEPE, and GROK, the meme coin frenzy is growing rapidly. What once seemed like a joke now captures the serious attention of crypto investors everywhere.
However, as believed by many crypto analysts, the consistency of such meme coin frenzy cannot be guaranteed, which makes the meme coin frenzy a wild ride worth watching closely!
*The information on this website does not constitute trading, investing, or financial advice.*
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