- Bitcoin briefly revisited its all-time high of $69,000 on March 5, marking its highest point in nearly three years. The subsequent 56% surge in bitcoin’s value this year has sparked considerable interest in other memecoins.
- Altcoins like Floki and Baby Doge experienced notable recoveries, ranging between 80% and 289%, accompanied by an astonishing 840% increase in trading volume, as per data shared by Bitget Research’s head analyst, Ryan Lee.
OUR TAKE
Bitcoin’s recent surge to its all-time high of $69,000 on March 5, after nearly three years, has sparked a renewed interest in the cryptocurrency market. While bitcoin’s resurgence is undoubtedly a positive sign for the overall market sentiment, the surge in memecoins raises concerns about the sustainability of the current market euphoria. Memecoins’ prices can be highly influenced by speculative trading and market sentiment rather than underlying fundamentals.
–Sylvia Shen, BTW reporter
On March 5, bitcoin made a short comeback to its all-time high of $69,000 after nearly three years. The 56% surge in the value of bitcoin so far this year has sparked interest in other memecoins.
Altcoins rally
In the last week alone, altcoins like Floki and Baby Doge have recovered between 80% and 289%, according to statistics provided by Ryan Lee, head analyst at Bitget Research. During the same time, trading volume has increased by 840%.
Analyst Lee said: “The rapid rise of assets such as bitcoin and ethereum has resulted in a spill-over effect, propelling the entire meme sector upwards.
“One significant factor contributing to the surge in these memecoins is their deployment on ethereum and solana chains, typically priced in ETH and SOL on decentralised exchange platforms. The upward trend in ETH and SOL prices consequently drives the price appreciation of meme coins.”
Also read: Unauthorised GameStop Memes attracts $4M, but investors left hanging
Solana memecoin sees meteoric rise
On the same day, Dogwifhat (WIF), a solana memecoin, witnessed an incredible surge before its Binance launch, rising 400% in only the previous week.
Four days after WIF went live on November 24, 2023, one trader reportedly profited $4.3 million on WIF, according to blockchain analytics company Lookonchain.
