In a surprising turn of events, while Bitcoin (BTC) and Ethereum (ETH) have faced a decline this week due to the uncertain regulations from the Federal Reserve and supervisory agencies, meme coins have witnessed an incredible surge.
Meme coins have historically had a significant impact on the cryptocurrency market, evidenced by their correlation with market peaks and subsequent declines. In the past week, amidst the crypto market’s downturn, meme-related keywords have seen a sharp increase. Notably, these sudden spikes on social media have emerged as reliable indicators to predict market peaks.
The basic correlation was first reported by the cryptocurrency market intelligence platform, Santiment. In a tweet published on April 22, the company said, “Crypto markets often top & fall when meme keywords begin to spike. And as crypto markets have slipped this past week, we’ve seen words like #pepe, #babydoge, and #bobo trend at high frequencies. These social spikes are reliable market top signals.”
Now, a new meme coin, PEPE, has been created to compete with the leading meme coin, Dogecoin (DOGE), and has surged 21,000% since its launch last weekend. It has secured the position as the seventh-largest meme coin by market capitalization, with a total value of around $94.6 million.
As of April 25, 2023, the Pepe the Frog-based meme coin has a “caution” tag on CoinMarketCap with a reported circulating supply of 420.69 trillion.
Additionally, on April 15, an investor named SmartMoney bought 5.9 trillion PEPE at a price of 0.125 Ethereum, making him a millionaire. Based on the current token price, this investment is now valued at over $1.4 million.
Another recent trending meme coin is BOBO, which was released on April 20 and is touted as the next PEPE. While many are labeled as scams, these notorious tokens can potentially bring enormous profits to investors.
On the other hand, Baby Doge Coin (BABYDOGE) is a spinoff of Dogecoin. It was launched in 2021 and currently holds the sixth position among the largest meme coins with a market capitalization of $331,276,266.
Although many meme coins have a bad reputation, they have been positioned within the cryptocurrency ecosystem, providing benefits to investors and, as Santiment noted, in some cases predicting market peaks and declines.
Overall, the rise of meme coins has been a significant trend in the cryptocurrency market, with investors taking advantage of the meme hype and generating enormous profits. However, caution is advised due to the volatile nature of the market and the possibility of scams.
Read more:
- Good Gensler Memecoin Takes Crypto Market By Storm With 1,500% Surge In 24 Hours
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