Memecoins Surge Despite Broader Market Downturn
Floki, Dogwifhat, Bonk Record Double-Digit Gains — Dogecoin, Shiba Inu Also Shrug Off Broader Market Bloodbath
Memecoins became the unexpected heroes of the cryptocurrency market on Monday. Dogwifhat, Floki, and Bonk managed to defy the broader market sell-offs, emerging as the biggest gainers.
What Happened?
A surprising rally saw Solana (SOL/USD)-based WIF and BONK along with Ethereum (ETH/USD)-based FLOKI, experience significant price hikes throughout the day. This sudden surge reversed the week-long downturn in the market.
WIF topped the memecoin sector among tokens with a market cap of over $1 billion. This token, inspired by a popular Shiba Inu meme wearing a pink beanie, saw a remarkable 127% spike in trading volume, reaching $682 million.
Cryptocurrency Gains
As of 11:00 p.m. EDT, here are the recorded prices and gains:
- Dogwifhat (WIF/USD): +19.05%, $1.89
- Bonk (BONK/USD): +13.52%, $0.00002232
- Floki (FLOKI/USD): +11.15%, $0.0001766
- Dogecoin (DOGE/USD): +1.57%, $0.1236
- Shiba Inu (SHIB/USD): +0.74%, $0.00001752
Why It Matters
The latest uptick in memecoins like WIF, BONK, and FLOKI occurs amid turbulent market conditions, exacerbated by the repayment plans of a defunct cryptocurrency exchange. While many cryptocurrencies with higher utility and potential struggled, retail traders flocked to memecoins for stability.
Bonk recorded impressive double-digit gains, bringing its weekly uplift to 6.67% and boosting its trading volume by 113% in the last 24 hours. Similarly, Ethereum-based Floki joined the rally with an 11% increase.
Meanwhile, established coins like Dogecoin and Shiba Inu also saw positive movements during the same period.
The Debate on Memecoins
The resurgence of memecoins fuels ongoing debate within the cryptocurrency community. While these tokens are often seen as risky and influenced by celebrity endorsements, they continue to attract attention and trading volume. Notably, analyst Michaël van de Poppe recently voiced his disapproval, citing the high risks and low volatility characteristic of memecoins.
In conclusion, while the broader cryptocurrency market faced significant challenges, memecoins like Dogwifhat, Floki, and Bonk provided a beacon of hope, recording substantial gains and capturing the interest of retail traders.
