Memecoins turned out to be the saviors of a besieged cryptocurrency market Monday, as dogwifhat, Floki, and Bonk defied the broader market sell-offs to emerge as the biggest gainers.
What Happened: A searing rally saw Solana (CRYPTO: SOL)-based WIF and BONK, along with Ethereum (CRYPTO: ETH)-based FLOKI, pump dramatically during the day, reversing the week-long corrective action.
WIF was the gainer in the memecoin sector among tokens with a market cap exceeding $1 billion. The coin, based on a popular meme of a Shiba Inu puppy wearing a pink beanie, witnessed a 127% spike in trading volume to $682 million.
BONK notched up double-digit upward moves as well, taking its weekly gains to 6.67%. Its trading volume jumped 113% in the last 24 hours. Ethereum-based canine coin FLOKI also joined the memecoin rally with an 11% uptick.
Meanwhile, blue-chip coins like Dogecoin and Shiba Inu also traded in the green as of this writing.
Why It Matters: The latest surge in memecoins comes amid panicky market sentiment, worsened by the defunct cryptocurrency exchange's repayment plans.
While coins thought to have higher utility and long-side potential cracked, retail traders took refuge in memecoins.
Debate around memecoins' popularity rages on in the cryptocurrency market. Popular trader and analyst Michaël van de Popperecently expressed his disapproval of meme coins, criticizing their inherent risks, lack of volatility, and celebrity-oriented culture.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
