Meme coins have been in a bull rally recently, dominating the top five performers of the week. In particular, PEPE is leading the way up with over 385% gains in the past seven days.
Benefited from this surge, an early investor in the meme coin has turned $3,000 into over $35 million, according to Lookonchain’s report.
Notably, the monitored account ‘0x25C…66E2a’ bought 4.9 trillion PEPE with $3,000 in the early days. This amount is currently worth more than $35.5 million at $0.000007 per token.
‘0x25C…66E2a’ transaction history with PEPE. Source: Etherscan (Lookonchain)
Memecoin euphoria dominates the crypto market
The meme coin euphoria is back in the cryptocurrency market, and investors must be cautious.
Interestingly, the best five weekly performances among the top 100 cryptocurrencies are held by meme coins. PEPE leads with 385% gains in the last seven days and $3.3 billion exchanged in the past 24 hours.
Dogwifhat (WIF), FLOKI, Shiba Inu (SHIB), and BONK compose the rest of the top five. In this context, Ethereum (ETH) is still the most profitable DeFi blockchain to speculate on memecoins. In the meantime, Solana (SOL) managed to conquer a significant market share, with WIF and BONK as its representatives.
Top gainers of the week among the top 100 cryptocurrencies. Source: CoinMarketCap
Nevertheless, meme coins are made of a purely speculative demand, which can vanish as fast as it arrives. Trading these cryptocurrencies is risky, and the volatility can be tremendous – both to the downside and upside.
When the euphoria and greed disappear, meme coins have no recovery perspectives due to the lack of fundamentals and organic demand. Investors must understand the nature of tokens made to have fun and never deploy more money than they can lose.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
