While Bitcoin (BTC) and Ethereum (ETH) experienced a decline this week as the recent surge faltered due to uncertainty surrounding the Federal Reserve and regulatory scrutiny, meme coins have experienced astonishing results.
Historically, meme coins have had a significant impact on the wider crypto market, as evidenced by their correlation with market tops and falls. In the past week, with the cryptocurrency market experiencing a decline, there has been a surge in the use of popular meme keywords. Notably, these social media spikes have emerged as dependable signals for predicting market tops.
The fundamental correlation was first reported by the crypto market intelligence platform Santiment. In a tweet published on April 22, the company said:
“Crypto markets often top & fall when meme keywords begin to spike. And as crypto markets have slipped this past week, we’ve seen words like #pepe, #babydoge, and #bobo trend at high frequencies. These social spikes are reliable market top signals.”
Meme coin market moves
Now, a newly created meme coin, PEPE, intended to compete with the top meme coin, Dogecoin (DOGE), has skyrocketed by a staggering 21,000% since its launch just last weekend. As a result, it has already secured a position as the seventh largest meme coin by market capitalization, with a total value of approximately $94.6 million.
As of April 25, 2023, the meme coin based on Pepe the Frog has a “self-reported” circulation of 420.69 trillion while also carrying an “exercise caution” sign on CoinMarketCap as of April 25.
Also, on April 15, an investor known as SmartMoney purchased 5.9 trillion PEPE coins for 0.125 Ethereum, which subsequently turned him into a millionaire. Based on the current price of the token, this investment is now valued at well over $1.4 million.
It is also worth mentioning another meme coin that has been recently trending is BOBO, which launched on April 20 and claims to be the next PEPE. Although many are labeled as scams or rug pulls, these infamous tokens can offer investors serious gains.
On the other hand, Baby Doge Coin (BABYDOGE) is a spinoff of Dogecoin. It was launched in 2021 and currently holds the sixth ranking of largest meme coins with a market capitalization of $331,276,266.
Despite many meme coins having a bad reputation, they have found their place in the crypto ecosystem, rewarding investors and, like Santiment noted, in some cases predicting tops and falls of the general market.
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