Earlier, as Bitcoin stumbled to a $58,500 level, broader market downturns followed, hitting meme coins hard. Dogwifhat’s (WIF) price had dropped below $1.5, a low not seen since March 2024.
Consequently, many industry observers proclaimed the “meme coin supercycle” as over, citing a lack of fundamental backing for these assets.
Meme Coins Swiftly Revive From Market Lows
Some crypto whales even started selling their meme coins. For instance, two crypto whales collectively dumped nearly $26 million worth of Pepe (PEPE) and Shiba Inu (SHIB).
Critics, including prominent Ethereum educator sassal.eth, expressed their discontent openly.
“Everyone is upset because they bought into the grifters telling them it was a “meme coin supercycle” and listened to the VCs telling them to buy their bags. RIP specifically to those who traded away their ETH for this dogshit(wifhat),” sassal.eth said.
To the critic’s surprise, WIF experienced a fast recovery, increasing its value by over 30% from this week’s lows.
Read more: Dogwifhat (WIF) Price Prediction 2024/2025/2030
This revival coincided with a major transaction by one of the Dogwifhat’s largest investors. According to Lookonchain, he spent $4.65 million on acquiring additional WIF tokens.
The significant investment involved purchasing 2.3 million tokens at $2.03 each, increasing the investor’s holdings to 23.39 million WIF, now valued close to $50 million. To date, he has made an estimated profit of about $83 million.
Furthermore, initiatives from key blockchain platforms like BNB Chain support the meme coin supercycle narrative. Eager to foster innovation, BNB Chain launched its Meme Innovation Campaign, committing $1 million to support nascent projects. The campaign’s first phase awarded $100,000 in prizes, attracting a global array of developers and projects.
Subsequently, the “Meme Heroes” phase plans to allocate the remaining $900,000 to liquidity pool support for promising meme coin projects. This initiative aims to boost liquidity and ensure a stable trading environment for users.
Projects that lock 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 possessing less than 10% of the total supply are eligible for this support.
“We will comprehensively consider the trading volume, number of token holders, and market capitalization if all other conditions are met,” BNB Chain elaborated.
Read more: 7 Hot Meme Coins and Altcoins that are Trending in 2024
The layer-1 blockchain also stresses the importance of security and transparency in these ventures, requiring project tokens to be verified on BscScan or undergo stringent security audits. These precautions are designed to build trust and sustainability in the meme coin market.
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