As a seasoned crypto enthusiast who’s been around since the early days of Bitcoin, I’ve seen my fair share of market ups and downs. The current surge of meme coins like Bonk, Pepe, and others has caught my attention, and I can’t help but feel a sense of nostalgia reminiscent of the early altcoin days.
Will meme coins continue to surge following a 30-day period where their market capitalization doubled, or is this growth simply fueled by the excitement surrounding Trump’s comeback?
Table of Contents
Meme coins explode
Ever since Donald Trump, who is well-known for his pro-crypto stance, took office as the 47th President of the United States, the crypto market has experienced a new surge of optimism. On November 13th, Bitcoin (BTC) reached an unprecedented peak of $93,400, further ascending during its price exploration phase.
In just under a month, the value of this rally has spread to the meme coin market, where the total market capitalization has significantly grown. Initially on October 18th, it was approximately $55 billion; however, it has now exceeded $124 billion—representing more than a 100% increase.
Well-known cryptocurrencies such as Dogecoin (DOGE), Bonk (BONK), and Pepe (PEPE) have been leading the way in this recent rise, achieving significant increases.
Over the past month, DOGE has experienced a tremendous surge of 166%, currently trading at around $0.375. PEPE has seen an increase of more than 100% and is now worth approximately $0.000021. Meanwhile, BONK has gone up by 116%, with its value standing at $0.000048.
Additionally, meme tokens on the Solana network such as Peanut the Squirrel (PNUT) and Moo Deng (MOODENG) are now attracting attention due to their viral popularity.
The value of PNUT, a memorial token honoring Peanut, the squirrel who sparked debate after being put down by the New York State Department of Environmental Conservation, has experienced a significant surge, reaching $1.60 – an increase of 336% in its trading price.
Much like MOODENG, which was sparked by a well-known Thai pygmy hippo on the internet, has remarkably increased by 555%, now valued at $0.55 per share.
Where does the market for meme coins go from here? Will the excitement around these digital tokens sustain, or could the meme coin trend ultimately exhaust itself? Let’s explore.
Understanding the meme coin surge
The recent surge in the meme coin market can be attributed to several interconnected factors. Let’s break them down one by one.
BONK’s token burn plan
The announcement made by BONK DAO on November 15 about their intention to destroy 1 trillion BONK tokens by December 25 has significantly contributed to the token’s upward trend.
In simpler terms, token burning is a frequent tactic used in cryptocurrency trading where tokens are sent to a location that cannot be accessed, making them unavailable for use. This action decreases the total number of tokens in circulation, leading to increased scarcity if the demand stays consistent or rises. If the demand remains steady or grows, prices tend to increase due to this reduced supply.
Quickly responding to the news, the market propelled BONK ahead of Dogwish (WIF), making it the highest valued Solana-based meme coin by market capitalization on November 17th.
Solana’s growing role
It appears that the activity on Solana (SOL) has reached unprecedented levels, largely due to the popularity of meme coins. As reported by analyst Patrick Scott, five out of the top ten protocols with the highest fees in the last 24 hours as of November 18th are hosted on Solana. This suggests that the surge in meme coins is contributing to a rise in Solana’s adoption, as increased user engagement is being stimulated.
Over the last day, it appears that more than half of the leading 10 cryptocurrency protocols based on transaction fees have been running on the Solana network. This could be an indication of a significant trend reversal within the market or simply a surge in popularity for meme coins, which is causing this unusual activity.
— Patrick Scott | Dynamo DeFi (@Dynamo_Patrick) November 17, 2024
Dogecoin and market sentiment
On November 12th, President-elect Trump unveiled plans for a new department called the Department of Government Efficiency, often abbreviated as DOGE. Although this department has no connection with the cryptocurrency Dogecoin, the similarity in acronyms has sparked renewed curiosity about Dogecoin, a digital token that has garnered attention due to endorsements from personalities such as Elon Musk in the past.
After the recent announcement, Dogecoin surged to a multi-year peak of $0.4359, rising an impressive 336% from its starting point of $0.10 over the past month. At the moment of writing, it is being traded at around $0.375.
The tweet from Elon Musk, saying “Threat to bureaucracy, not democracy,” contributed significantly to the price surge, as it was seen as an endorsement of Dogecoin’s grassroots philosophy.
Further gains incoming?
As interest in meme coins grows, experts are identifying trends and making predictions about future actions. However, let’s see what the data indicates instead.
Dogecoin: eyeing $1?
Recent analysis reveals that DOGE is forming a Descending Triangle pattern. While this might initially suggest consolidation, a historical review shows that this setup has often been the precursor to major bullish moves.
A trader recently noted, “$DOGE is now breaking down and may rise to another high.” The potential upside? A target of $0.80, which would surpass its all-time high of $0.73 set in 2021.
One factor driving this belief is its newfound political relevance. The creation of the Department of Government Efficiency has drawn public attention, even if the connection is purely coincidental.
In simpler terms, Miles Deutscher, a cryptocurrency expert, stated that the recognition of the term “D.O.G.E” (possibly referring to Dogecoin) is likely to grow more widespread when Donald Trump is president.
Controversial opinion:
I think $DOGE flips $SOL this cycle and becomes the 3rd biggest token after $BTC and $ETH.
The mindshare for the D.O.G.E acronym will only increase once Trump’s in office and changes start being made.
Easy buy for normies.
$1 seems obvious.
— Miles Deutscher (@milesdeutscher) November 16, 2024
The sentiment is that DOGE could become an easy entry point for new investors (“normies”), and a $1 target no longer feels far-fetched. However, this will depend on sustained market interest and broader adoption.
Bonk: the Solana meme star
Although Bonk has firmly established itself as the top Solana meme token, some traders are sounding alarms about potential short-term dangers. As one expert explained, “Given that the price is currently overbought, I wouldn’t recommend making long trades at this level.
The price of BONK is nearing the end of its third bullish trend, which is part of a larger upward movement. At this point, the price seems excessively high, making it an unattractive choice for long-term trades. I’ll hold off and wait for a correction during wave 4. An optimal moment to consider long trades would be when the price tests the green support level. (intraday context)
— Stoic Crypto Trader (@stoic_traders) November 14, 2024
Investors expect a short-term price drop, known as a wave four correction, which is usually a sign of stronger future growth. If BONK tends to follow past trends, this dip may lead to record highs after the market has properly processed the recent increases.
Pepe eyeing further gains
Pepe’s price trends seem to closely follow technical analysis principles, matching up with key Fibonacci retracement and extension points.
A financial analyst recently posted on Twitter that the price of $PEPE appears to be aligning flawlessly with the fractal pattern and has reached the projected 1.618 extension at approximately 0.00002484 cents. These extensions play a significant role in technical analysis, frequently indicating potential future price directions.
$PEPE following the fractal impeccably, having reached the expected 1.618 extension at $0.00002484.
I´m still long from the bottom range as I expect that this will continue to playing out. Main targets above remain $0.00003655-0.00005997.
— Lourenço VS (@lourenco_vs) November 18, 2024
The goals for PEPE’s price are established at $0.00003655 and $0.00005997, which equate to potential increases of 68% and 144% from the current prices. But, if the market becomes overextended, it might cause temporary corrections before these targets are reached.
The road ahead
The future of meme coins is closely linked with the performance of Bitcoin, particularly since Bitcoin is currently in its price exploration period.
However, it’s important to note that while Bitcoin’s price fluctuations can spark meme coin surges, its inherent volatility is always a potential danger to consider.
Instead of relying on a solid fundamental foundation, meme coins tend to be driven more by public opinion and speculation, as opposed to tangible value.
If Bitcoin experiences a steep drop or extends its holding pattern for an extended period, less established meme coins might face significant price decreases.
Concurrently, the emergence of meme coins built on the Solana network brings a new layer to the market, yet maintaining its intrigue relies on continuous excitement and favorable market circumstances.
Therefore, it’s important to closely monitor Bitcoin fluctuations and be ready for rapid market changes. If you’re thinking about investing in meme coins, exercise extreme care. Remember to only risk money that you can comfortably part with.
Read More
- We’re Terrible At Organizing Things.’ Tom Holland Reveals The Sweet Holiday Scheme He And Zendaya Are Going To Try Next Year
- Path of Exile 2: How To Find & Unlock the Realmgate
- Yarrow Slaps’ Distorted Celebrity Portraits Take Center Stage in New Video Game-Inspired Show
- Cookie Run Kingdom: Shadow Milk Cookie Toppings and Beascuits guide
- Girls Frontline 2 Exilium tier list
- NewsNation Taps Leland Vittert to Replace Dan Abrams
- XLARGE Celebrates Lil Wayne With New Collection
- Million-Dollar Crypto Scandal: Abra Pays Up in SEC Settlement
- Deva: Shahid Kapoor and Pooja Hegde’s lip-lock scene gets trimmed by CBFC? Film’s runtime and rating revealed
- Joel McHale Joined Scream 7 And His Role Destroys A Popular Fan Theory
2024-11-19 18:55