Memecoin trading at levels last seen before crypto bubble burst

“Historically, a surge in meme tokens has often signaled a market top,” Dessislava Aubert, research analyst at Kaiko, said. “However, it is difficult to predict whether this will continue to be the case now as new capital is entering the crypto markets. We also observe that some of these tokens are increasingly driven by idiosyncratic factors and are less correlated with Bitcoin.”

Pepe, a frog-themed coin, and dogwifhat — a dog pictured wearing a hat — continued racking up fresh highs in the past week, according to tracker CoinGecko. The total market value of the sector has reached more than $60 billion on Wednesday.

Memecoins have been a long-existing phenomenon in crypto, as small investors and promoters see the microscopic prices of memecoins as an opportunity to quick post huge returns despite the lack of traditional fundamentals.

“It’s not a great reflection of the actual realizable price,” said Thomas Perfumo, head of strategy at Kraken Digital Asset Exchange. “So for example, if you saw a memecoin that supposedly had a market capitalization of a billion dollars, it’s very unlikely that anyone would be able to sell anywhere close to a billion dollars of it without materially impacting the price.”

That’s not stopping fans of the tokens from trying to keep the momentum going. A group of dogwifhat token holders announced last week a public fundraising campaign to put the dogwifhat meme on the Las Vegas Sphere. The group has already reached its target goal of $650,000 in the USDC stablecoin, based on the transaction history of the digital wallet for the fundraise. But it’s unclear whether and when the fund will be used to promote the meme in Las Vegas.

Source: Forex-Markets-Economic Times