Solana-founded meme coin Dogwifhat (WIF) saw significant growth this week, overtaking Pepe to become the third largest meme coin by market capitalization.
According to CoinGecko, #WIF has a market capitalization of $3.6 billion, behind only Shiba Inu (SHIB) with $18.2 billion and Dogecoin (DOGE) with $31 billion. Tokens with the "dog in a hat" #meme overtook Pepe, which has a market capitalization of about US$3.3 billion.
While the cryptocurrency market remains relatively stable, the meme coin category has outperformed other sectors such as decentralized finance and exchange-issued tokens such as BNB.
The WIF token briefly hit the $4 mark, marking its strongest daily performance since launch. Out of the top 100 cryptocurrencies by market capitalization, WIF is currently ranked 38th.
MemeCoin's recent rally began on Thursday amid speculation that Dogecoin (DOGE) will be used in the upcoming X payment service, though there has been no official announcement from the company Total purchases of #DOGE futures reached a record $2 billion, though this figure may be skewed toward long positions and may indicate a period of sustained volatility is approaching.
Following Dogecoin's rise, other dog-themed meme coins such as Floki (FLOKI) and BONK also rose, albeit with slight fluctuations.
On the macroeconomic front, trading firms warn that #bitcoin and Ether could retreat from their recent gains as their price swings show signs of fading.
Singapore-based QCP Capital notes that "price gains in the first quarter have been exponential and are showing signs of exhaustion. " #BTC reversal risk is shifted down by -8%, indicating some concern. Funding and forwards remain very high, meaning speculators are still paying high prices to maintain their leveraged long positions.
The increase in demand for Solana meme coins has also been accompanied by an increase in pre-sale scams.
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