Early Friday, WIF briefly touched the $4 mark before retracting, highlighting the volatility within the meme coin sector amidst a relatively stable overall market.
Meme coins, spearheaded by Solana’s dogwifhat (WIF), experienced significant surges for the second consecutive day, overshadowing other sectors like DeFi and exchange tokens. Notably, bets on DOGE-tracked futures soared to a record $2 billion, prompting some trading firms to caution against potential pullbacks as both bitcoin and ether showed signs of fatigue.
While Bitcoin traded around $70,000 with minimal changes over the past 24 hours, other major cryptocurrencies like Ether, Solana’s SOL, and Cardano’s ADA experienced slight declines. Bitcoin Cash (BCH), on the other hand, recorded a 4% increase, continuing its rally from Thursday.
Despite the overall market’s marginal movement, data from CoinGecko revealed an 8% surge in the meme coin category on average, surpassing the growth seen in more traditional sectors such as decentralized finance and exchange tokens. This surge in meme tokens began on Thursday amid speculations surrounding DOGE’s potential utilization in an upcoming payment service by social application X, despite no official confirmation from the company.
Tokens inspired by canine themes, including floki (FLOKI) and WIF, witnessed notable increases as investors speculated on their potential correlation with dogecoin. WIF, in particular, surpassed pepecoin (PEPE) to become the third-largest meme token by market capitalization, briefly surpassing the $4 mark on Thursday.
However, amidst these bullish movements, some trading firms expressed caution, citing signs of exhaustion in the price action of bitcoin and ether. QCP Capital, based in Singapore, highlighted concerns about high leverage in the market, emphasizing the need for vigilance despite their overall bullish outlook.
While the price rally has been robust in the first quarter, indications of potential exhaustion and elevated leverage levels warrant a cautious approach moving forward.
