Solana’s Memecoins in Trouble: WIF, BONK, and POPCAT Tumble
- After leading the market for weeks, Solana memecoins have lost their momentum, with Dogwifhat (WIF) and BONK losing close to 3% while Popcat lost 4%.
- Despite the dip, memecoins continue to be a risky but lucrative investment, with several traders who bet on some of these tokens minting millions of dollars in profit.
Memecoins have had a bumper season, with some surging over 1,000% in the first five months of the year. However, after leading the market, the sector has lost some of its momentum, and over the past day, many are in the red, with Solana memecoins taking a bigger blow than their peers.
Solana’s biggest memecoin, Dogwifhat (WIF), dipped 3.6% over the past day to trade at $3.25 at press time. Despite the dip, it’s still up 7.5% for the week and 19% for the month. At $3.253 billion, WIF is the fourth-largest memecoin after DOGE, SHIB and PEPE.
Despite the slowdown in its momentum, one analyst believes that WIF is set to break out and hit new highs. He likened WIF’s price movements to LUNA’s back in 2021. While LUNA would eventually crash and become one of the crypto’s market worst nightmares, it was one of the most explosive tokens back then.
The analyst stated:
I recall being bullish on Luna as it held a multi-month trendline, printing higher lows before eventually breaking up from $30s to $100s. Wouldnt surprise me if we see a similar structure play out on WIF going in the hope it can potentially trade back towards the high.
As illustrated on the chart below, the analyst believes the token will hit over $6 over the next few weeks. This would be a new all-time high, putting WIF’s market cap at over $6 billion and placing it among the top 20 cryptos.
Solana Memecoins Dip
Beyond WIF, other Solana memecoins have recorded slower price action. BONK, the second-largest in Solana, dipped 2.3% to trade at $0.00003342 for a $2.2 billion market cap. POPCAT dipped 3.7% to trade at $0.3925.
Book of Meme (BOME), which is third in Solana, managed to stay in the green, gaining 2% over the past day. Cat in a dogs world (MEW) was among the big gainers at 8%.
Overall, memecoins had a slow weekend. DOGE lost 1%, while Shiba Inu lost 2%. Floki and Pepe each lost around 3%.
Despite the dips, memecoins continue to be massively popular among traders. This is because they tend to be highly volatile and can surge much faster and higher than most other tokens.
For instance, Lookonchain recently revealed that one trader spent under $6,000 to purchase over six million WIF tokens in December last year. That stash has yielded $1.6 million in profits, and he still holds over 1.4 million tokens, which are worth $5.5 million at current prices. The trader sells every time the token surges.
