Earlier, when Bitcoin tumbled to $58,500, a broader market slump followed, hitting meme coins hard. Dogecoin (WIF) dropped below $1.5, a low not seen since March 2024.
As a result, many industry observers have declared that the “meme supercycle” is over, citing the lack of fundamental support for these assets.
Meme coins have quickly rebounded from market lows
Some crypto whales have even started selling their coins. For example, two crypto whales collectively dumped $26 million worth of Pepe (PEPE) and Shiba Inu (SHIB).
Critics, including prominent Ethereum guru sassal.eth, have publicly expressed their displeasure.
“Everyone is upset because they bought into scammers telling them it was a ‘super-fast coin cycle’ and listened to VCs telling them to buy their bags. Rest in peace specifically to those who traded their ETH for this crap,” sassal.eth said.
To the surprise of critics, WIF has seen a rapid recovery, increasing its value by more than 30% from this week’s lows.
Read more: Dogwifat (WIF) Price Forecast 2024/2025/2030
This recovery coincided with a major deal made by one of the largest investors in Dogwifhat. According to Lookonchain, he spent $4.65 million to acquire additional WIF tokens.
The large investment included the purchase of 2.3 million tokens at $2.03 each, increasing the investor’s holdings to 23.39 million tokens, which are now valued at approximately $50 million. To date, he has made an estimated profit of $83 million.
Furthermore, initiatives from major blockchain platforms like BNB Chain support the meme coin supercycle narrative. Eager to foster innovation, BNB Chain launched its Meme Innovation Campaign, allocating $1 million to support startup projects. The first phase of the campaign awarded $100,000 in prizes, attracting a global pool of developers and projects.
After that, the “Meme Heroes” phase plans to allocate the remaining $900,000 to support the liquidity pool of promising meme projects. This initiative aims to enhance liquidity and ensure a stable trading environment for users.
Projects that hold 100% of their liquidity for at least one year, contribute 10% of the total token supply to the liquidity pool, and have the top ten external account holders holding less than 10% of the total supply are eligible for this support.
“We will comprehensively consider the trading volume, the number of token holders and the market value if all other conditions are met,” BNB Chain explained.
Read more: 7 Popular Meme Coins and Altcoins That Are Popular in 2024
Layer 1 blockchain technology also emphasizes the importance of security and transparency in these projects, requiring project tokens to be verified on BscScan or undergo stringent security audits. These precautions are designed to build confidence and sustainability in the coin market.
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