- Bitcoin’s modest gains are being overshadowed by the surge in meme coins, with Pepe (PEPE) leading the pack with a 22% increase in the past day.
- Other meme coins such as Bonk (BONK), Dogwifhat (WIF), and FLOKI have also made significant gains, despite the broader crypto market taking a plunge.
- However, the meme coin market is considered risky, with new cryptocurrencies disappearing as quickly as they spring into existence.
As Bitcoin struggles, meme coins are stealing the spotlight with significant gains. However, the volatile nature of these cryptocurrencies makes them a risky investment.
Meme Coins Outperform Bitcoin
Bitcoin has been struggling lately, though its modest gains Thursday are surely a welcome sign of life for traders. But Bitcoin’s slight rise is being overshadowed by a crypto category that is on fire today: meme coins. Pepe (PEPE) is the biggest winner, shooting up by over 22% in the past day per data from CoinGecko. The Ethereum-based token hasn’t seen much price action over the past week, though, but still is up by over 8% in the past 30 days.
Other Meme Coins Making Notable Gains
Over the past day, the Solana-based Bonk (BONK) has boomed by over 18%; it’s now priced at $0.00002479, CoinGecko shows. Meanwhile Dogwifhat (WIF) and FLOKI have both made notable gains—they’re up 14% and 12%, respectively, making them two of the other biggest gainers over a 24-hour period. And long-standing meme coins Dogecoin (DOGE) and the Ethereum-based Shiba Inu (SHIB) have each posted 24-hour gains around 9%, adding to Thursday’s meme coin frenzy.
Broad Crypto Market Takes a Plunge
The boom in meme coins and tokens comes at a time when the broader crypto market has taken a plunge. This week, Bitcoin, Ethereum, and other major cryptocurrencies took a nosedive after investors cashed out of the popular spot Bitcoin exchange-traded funds (ETFs), and U.S. inflation proved sticker than expected. Bitcoin is now trading for $59,000 after plunging by nearly 8% over seven days. It’s now well below its March all-time high of nearly $74,000 per coin.
Meme Coin Market: A Risky Casino
The meme coin and token market is risky: New cryptocurrencies disappear almost as quickly as they spring into existence, either making traders huge gains or crushing losses. Venture capital firm Andreessen Horowitz’s CTO Eddy Lazzarin last week described the sphere as a “risky casino” that is “damaging” for the world of crypto.
Conclusion
Despite the surge in meme coins, investors should be cautious as the market is highly volatile and unpredictable. While some traders may see huge gains, others could face crushing losses. As always, it’s important to do thorough research before investing in any cryptocurrency.
