Disclaimer: The opinions expressed by our writers are their very own and don’t signify the views of U.Today. The monetary and market data offered on U.Today is meant for informational functions solely. U.Today just isn’t responsible for any monetary losses incurred whereas buying and selling cryptocurrencies. Conduct your personal analysis by contacting monetary consultants earlier than making any funding choices. We consider that each one content material is correct as of the date of publication, however sure provides talked about could not be available.
What occurred
The meme coin class has skilled a major 20% achieve in late March. The surge started on early Thursday with meme tokens displaying elevated momentum, fueled by hypothesis surrounding the potential integration of Dogecoin (DOGE) right into a forthcoming funds service of a social software often known as X.
Dogwifhat (WIF) (a meme token) managed to flip Pepecoin (PEPE) in market capitalization rankings, turning into the third-largest meme token on this class. WIF’s value additionally rose above the $4 mark on March 28, displaying the largest value enhance since its launch.
However, only a week later, WIF has misplaced most of its features. What can we make of all this?
WIF origins
The “Dogwifhat” meme originates from {a photograph} of a Shiba Inu canine carrying a beanie. In late December 2019, edited variations of this picture, that includes logos and pictures on the beanie, turned in style on Twitter, particularly, within the eSports neighborhood.
WIF entered the open market in December 2023 at roughly $0.001555. By the tip of that month, it had surged to $0.30 earlier than declining to $0.08 in January. This speedy fluctuation in value highlights the speculative nature of meme cash like WIF.
The founders of the dogwifhat challenge are nameless, however they drew inspiration from Dogecoin (DOGE), the well-known meme coin. Unlike DOGE, which has practical use circumstances, the worth of dogwifhat is pushed solely by hypothesis.
WIF value potential
Meme cash famously entice large and younger retail traders with their relative cheapness, massive value actions, and their robust bond with present web tradition.
The value of Dogwifhat (WIF) reached its latest all-time excessive of $4.64 on March 30, hovering greater than 250,000% since its launch.
However, up to now week, the value has dropped by greater than 10%, and it’s at the moment buying and selling at $3.8. Despite this recent drop, WIF nonetheless holds the third place when it comes to market capitalization ($3.25 billion), though it has decreased by 28% this week.
The total meme cash market sentiment appears resilient (though, some would possibly argue that the meme cash rise is an indication of a possible crypto market crash). In the previous month, meme cash’ complete market cap has reached over $55 billion.
The approval of US ETFs investing immediately in Bitcoin in January sparked an $800 billion rally in crypto in simply the previous month. It’s broadly believed out there {that a} memecoin frenzy follows a Bitcoin rally.
Memecoins like Dogwifhat’s WIF, Pepe, and Bonk have skyrocketed since late February, pushing the worth of their complete circulating provide into the billions of {dollars}.
High volatility is without doubt one of the explanation why meme cash are so in style amongst retail traders. In this regard, WIF is probably going to proceed to ship massive value actions.
