Dogwifhat (WIF) has gained more than 420% in the past month, surpassing Pepe to become the third largest meme coin by market capitalization.
The popular Solona meme coin WIF continues its impressive rally, with its price surging to around $4 earlier today (March 29). After today’s massive gains, the coin’s market capitalization reached a staggering $4 billion.
Although the price of WIF has retreated in the hours leading up to press time, the token still has a daily gain of 16.5%, with a unit trading at $3.62.
WIF becomes third largest meme coin
Its market capitalization currently stands at $3.63 billion, making it the third largest meme coin and the 41st largest cryptocurrency on the market.
This milestone currently places WIF behind only Shiba Inu Coin (SHIB) and Dogecoin (DOGE) in the meme coin rankings. Instead, WIF now ranks ahead of other meme-based cryptocurrencies such as Pepe (Pepe) and Floki (Floki), which are valued at $3.25 billion and $2.35 billion respectively.
Less than two weeks ago, members of the Dogwifhat community raised funds to sponsor the promotion of the token on Vegas Sphere. The move seems to have paid off, as the token has seen a significant increase in price since then.
WIF's largest holder didn't sell despite making huge profits
The sharp rise in WIF prices enabled many investors to make huge profits. It is worth noting that one of the largest WIF holding addresses “2Fcm…PE6d” made huge profits.
According to prominent Chinese journalist Colin Wu, the address recorded a profit of $134 million, an increase of 1,440%, amid the surge in prices. Wu revealed that the users behind the address began purchasing the token in December 2023 at an average price of $0.248.
Further investigation by Crypto Basic revealed that the address is the third largest WIF address, holding 37,627,488 (37.62 million) WIF tokens. This represents 3.76% of the total WIF supply.
According to data from Solscan, a BTC explorer, leading crypto exchange Binance is the largest WIF holder, holding 143,088,036.921841 (143 million) tokens, or 14.32% of the total supply. The second largest WIF address holds 4.26% of the token supply (42.6 million), worth $152.51 million.
Despite the significant gains over the past day, Wu said the token’s sell-off has not yet begun. Apparently, investors expect the token’s price to surge further.
Trading firms warn: Recent gains may fall
Meme coins soared an average of 8% on Friday, outpacing niche markets such as decentralized finance (DeFi), yield farming and exchange tokens, according to CoinGecko.
Earlier Thursday, the meme coin began a fresh rally amid speculation that social app X's upcoming payment service will use DOGE, although the company has yet to make an official statement.
Bets on futures tracked by Doge jumped to a record $2 billion, indicating that the market is leaning toward the long side in anticipation of future price fluctuations.
Meanwhile, some trading firms are warning that recent gains could be pulled back as price action in Bitcoin and Ethereum shows signs of exhaustion.
“Prices rose exponentially in the first quarter and there are signs that prices have dried up,” Singapore-based QCP Capital said on Friday. “Ethereum risk reversal is tilted to the downside at -8%, indicating some concerns. Financing and long-term Interest rates remain very high, which means speculators are still paying high prices to maintain their leveraged long positions."
