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Solana-based meme coin Dogwifhat (WIF) has experienced a significant surge this week, overtaking Pepe to become the third-largest meme coin by market capitalization.
Based on data from CoinGecko, WIF now has a market cap of $3.6 billion, following Shiba Inu’s $18.2 billion (SHIB) and Dogecoin’s $31 billion (DOGE). The token has outranked Pepe, which has a market cap of around $3.3 billion.
There is relative stability across crypto markets, but the meme coin category has outperformed other sectors, such as decentralized finance, and exchange-issued tokens, such as BNB.
For a brief period, the WIF token touched the $4 level, a feat that has been touted as its strongest daily performance since it launched. Out of the top 100 cryptocurrencies ranked by market cap, WIF is now on the 38th place.
The recent meme coin rally started early Thursday amid speculations of Dogecoin (DOGE) being used on an upcoming payments service of X, despite no official communication from the company. Purchases for DOGE-tracked futures saw a record $2 billion, which may indicate an oncoming period of sustained volatility, although this indication may be skewed with a bias for longs.
Other dog-themed meme coins, such as Floki (FLOKI) and BONK, were also seen taking gains as the rally begun by Dogecoin took off, albeit with minimal change.
On the macro side, trading firms are warning of a potential pullback in recent gains as Bitcoin and Ether price action showed signs of exhaustion.
“The price rally has been exponential in Q1, and there are signs of exhaustion,” notes Singapore-based QCP Capital. “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 Solana network over which WIF was created is known for its low transaction costs, and it has since emerged as a preferred blockchain for trading meme coins. The Solana meme coin market has surged by 13% over the past week and more than 40% over the past month, according to data from CoinGecko.
The surge in Solana meme coins has also been accompanied by a rise in presale scams. On-chain sleuth ZachXBT has that have raised concerns due to fraudulent activities and suspicions of being rug pulls.
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