Meme coins led by Solana-based dogwifhat (WIF) rose for the second day and rank as the third-largest meme currency to dominate as a category as the market stays mostly unchanged ahead of the holiday weekend in the United States, Europe, and some regions of Asia.
According to data from CoinGecko, meme coins increased by 8% on average, surpassing more serious sectors like exchange tokens, yield farms, and decentralized finance.
Meme tokens began trading early on Thursday due to rumors that the social program X would use DOGE for a future payment service; however, the firm has not released any formal statements.
With a bias toward longs, bets on DOGE-tracked futures surged to a record $2 billion, indicating predictions of future price volatility.
Tokens with dog themes, including WIF and floki (FLOKI), surged as a beta wager against dogecoin. Pepecoin (PEPE) was overtaken by WIF on Thursday, surpassing $4 to rank as the third-largest meme currency by market valuation.
However, as the price movement of ether and bitcoin began to show signs of fatigue, numerous trading firms issued warnings of a retreat in recent gains.
In a Telegram broadcast on Friday, Singapore-based QCP Capital stated, “The price rally has been exponential in Q1, and there are signs of exhaustion. ETH risk reversals are skewed to the downside at -8%, indicating some fear. Funding and forwards remain very elevated, which means that speculators are still paying high prices to keep their leveraged longs.”
The company said, “While we remain bullish, we are cautious about leverage.”
