Memecoin Frenzy: PEPE, Floki, and Bonk Witness Unprecedented Rallies Amidst Sharp Market Volatility
Summary:
The memecoin market has seen substantial activity recently, with popular tokens including PEPE, Floki, and Bonk recording substantial price and volume surges. According to data from Santiment, trading volumes of these memecoins have risen over 3,000% in the past week. Meanwhile, Ethereum-based Pepe and Solana-based Bonk have witnessed drastic price increases. However, such exceptional gains often lead to steep declines, with some memecoins losing more than 80% from their peak value.
In the past week, a flurry of activity has been witnessed in the memecoin market with popular tokens such as PEPE, Floki, Bonk, and others experiencing an exceptional bull run. These specific meme-based cryptocurrencies have seen a surge in price of over 500% accompanied by a titanic 3,000% increase in trading volumes. Based on data provided by Santiment, these four memecoins, on average, have witnessed a 3,000% increase in trading volumes over the week. The explosion in volume has amplified public interest, leading most new memecoins to reach new all-time highs.
This skyrocketing interest is not only reflected in the trading volumes but also in the rise of social activity around these coins. Ethereum's PEPE has experienced a 370% price inflation over the past week, making it the eighth largest in terms of trading volume despite being only 44th in market cap. Pepe's market cap has seen a phenomenal increase from $1.5 billion to $3 billion in a mere two-day span.
Similarly, Bonk, hosted on Solana's platform, has witnessed a 190% hike in price this past week, edging towards its all-time high of 0.0000345. Riverside's Floki, too, saw a staggering 350% weekly price surge, standing as 16th largest in trading volume. Those memecoins showing triple-digit growth rates in the past week are, in general, newcomers in comparison to veterans such as Dogecoin and Shiba Inu. But even these long-established memecoins saw a significant growth spurt with Dogecoin's weekly gain at 90% and Shiba Inu at 175%.
The frenzy surrounding memecoins has echoes of the 2021 bull run, spearheaded by Dogecoin with the backing of tech tycoon Elon Musk. Each memecoin cycle, with its volatile price mix, has allowed certain investors to pocket large returns on their investments within a short timeframe. But this wild ride often leads to others losing big. Several cryptocurrency veterans argue that these tokens tarnish the overall image of the cryptocurrency market.
Memecoins that have seen gigantic growth at the peak of the bull run often face the steepest declines as well. Some memecoins have depreciated by more than 80% from their peak value.
Published At
3/4/2024 12:04:07 PM
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