Solana meme coin, Dogwifhat (WIF), has crashed beneath $2 this week, witnessing double-digit declines as investor curiosity within the widespread meme coin begins to wane.
Dogwifhat Crashes 26%
The value of Dogwifhat is at present buying and selling at $1.8 because the doggy-themed meme coin continues to expertise large bearish strain from prevailing market volatility. The worth of the cryptocurrency has crashed massively, falling by a whopping 25.72% over the previous seven days.
The rationale for this surprising decline has been attributed to the latest promoting pressures from WIF buyers. Knowledge from Solscan has revealed that greater than $16 million WIF tokens have been bought off by nameless cryptocurrency buyers over the previous week. This consists of small quantities of tokens and huge sums of lots of of 1000’s of WIF cash.
Usually, when a cryptocurrency experiences steady liquidations from buyers, it triggers promoting pressures, which ends up in a decline in its market worth. Within the context of Dogwifhat which is a meme coin, its value is extremely risky and speculative, making it extraordinarily prone to minor market modifications and sell-offs.
Sadly, extra whales are starting to unload their WIF token. Blockchain analytics platform, Lookonchain, disclosed in an X (previously Twitter) put up on June 22, that an nameless whale deposited an astonishing 12.66 million WIF tokens, valued at $23.4 million to Binance.
Usually, a transaction that entails transferring cash from a pockets to a crypto change usually alerts the potential for an imminent sell-off. If promoting pressures persist in Dogwifhat, the favored cryptocurrency may see its value falling additional to new lows.
For the reason that starting of June, Dogwifhat’s efficiency has been poor, recording extra declines than most meme cash available in the market after crashing by virtually 40% over the previous month. The cryptocurrency beforehand rose to an all-time excessive of $3.97 in March, flipping Pepe (PEPE) in some unspecified time in the future to grow to be the third largest meme coin by market capitalization.
As of writing, Dogwifhat ranks because the fourth largest meme coin, with a market capitalization of $1.8 billion, in accordance with CoinGecko. 4 out of the highest 5 largest meme cash by market capitalization together with Dogecoin (DOGE), Shiba Inu (SHIB), Pepe and Floki (FLOKI) are witnessing slight features. Nevertheless, Dogwifhat continues on its decline development, dropping by 2.13% within the final 24 hours, in accordance with CoinMarketCap.
What’s Subsequent For WIF?
If promoting pressures persist, WIF’s value may witness extra declines that might probably push the cryptocurrency’s value beneath $1. The founder and CEO of CryptoQuant, Ki Younger Ju has expressed bearish sentiment for meme cash available in the market.
In keeping with Ju, the meme coin dominance within the altcoin market has begun to wane. He shared a value chart depicting the market efficiency of meme cash from 2022 to 2024, highlighting that exposed that buyers will ultimately start to shift from playing to focusing available on the market’s fundamentals.
He urges buyers to go away the meme coin market, indicating that the period of creating simple income from meme-based cryptocurrencies is perhaps over.
Featured picture from Unhappy and ineffective humour, chart from TradingView
