Dogwifhat’s Meteoric Rise: Will it Eclipse Bonk?
BitMEX listing fuels hype, reminiscent of Solana’s BONK meme coin boom.
However, Bonk’s past month should be a lesson to trigger-happy investors – meme coins go up and down at a moment’s notice.
Contrary to popular belief, the crypto community is a fairly predictable bunch. Their actions can be mapped out by following a simple equation: see meme coin of doge, buy meme coin of doge. But with the undisputed king Dogecoin (DOGE) and its heir apparent Shiba Inu (SHIB) occupying the hearts and wallets of most crypto traders, how does a new Doge-based meme coin manage to capture the community’s attention?
Well, it’s actually quite simple. Make the dog wear a hat.
Source: knowyourmeme.com
Dogwifhat (WIF) Up 150% Since Inception
Dogwifhat has only been around for about a month but has quickly left a lasting impression on investors. The Solana-based meme token has more than doubled in price since it came into circulation in December last year, rocketing from about 17 cents (AUD $0.26) to 41 cents (AUD $0.63).
Dogwifhat (WIF), 1-month chart, source: CoinMarketCap
Like most meme coins, Dogwifhat doesn’t exactly do much. It’s basically exactly what it says it is – a token of a dog wearing a hat. However, the crypto community can’t help themselves with this kind of thing and began buying it up like hotcakes. The biggest price surge to date came after the WIF coin became available on popular trading platform BitMEX, improving access to the digital currency.
BONK Enduring Rough Start to 2024
The Solana ecosystem’s original lovechild, BONK, enjoyed a spectacular end to 2024, soaring from irrelevance to being the clear number three meme coin by market cap. However, the relationship may be over, as the token has fallen more than 50% from its peak – with a 42% drop in the past month alone.
Just how far Dogwifhat can go remains to be seen. If it continues on its current trajectory, the token may be able to secure listings on major exchanges like Binance and Coinbase – as its predecessor Bonk did. This would bring in thousands of potential investors in the meme coin and would likely cause another surge in price.
All that said, it’s worth remembering that Dogwifhat is literally a Dog wif a hat. Meme coins are notoriously volatile and rely almost exclusively on hype to generate value. Once the community moves on to the next meme – perhaps Dog wif tie, or Dog wif shoe – many will forget that the original token ever existed. But of course, there’s no harm in responsibly buying admission to the rollercoaster…unless you’re afraid of heights.
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Filed under: Bitcoin - @ January 18, 2024 5:22 am