$BONK, $SHIB, $FLOKI Surge: Meme Coins Back in Spotlight

Why Trust Techopedia

Popular meme coins like Shiba Inu (SHIB), and Floki Inu (FLOKI) have taken the spotlight following the recent Bitcoin halving. These digital assets, often inspired by internet memes and enjoying a cult-like following online, have seen substantial gains over the past week.

Bonk (BONK)’s price leads the pack with a 76% gain over the past seven days, according to data from CoinMarketCap. Pepe (PEPE), Dogwifhat (WIF), Shiba Inu, and FLOKI prices are also up double digits during this period.

The surge in meme coins seems to be a response to the overall dynamics of the crypto market, where altcoins often experience price rises following major movements in Bitcoin (BTC).

The leading cryptocurrency registered some gains after the successful completion of the highly-anticipated halving event on April 20, currently priced at around $63,500.

Zooming out, BTC has remained relatively steady since the end of February, despite dropping from its new ATH record of $73,750 on March 4.

Key Takeaways

  • Meme coins such as Dogecoin, Shiba Inu, and Floki Inu have experienced significant gains following Bitcoin’s recent halving.
  • Shiba Inu has recorded a substantial monthly increase of 190% leading up to the halving, with a notable drop in exchange reserves to their lowest since February 2022.
  • Dogecoin saw a surge in market activity and trading volume shortly after Bitcoin’s halving, despite a decline in its price over the past month.
  • Floki Inu, highlighted by a new brand ambassador with a large following, also saw a notable gain over the past week.
  • Solana-based meme coins have also surged, with BONK leading the gains.

Shiba Inu (SHIB)

Shiba Inu has shown impressive performance, with a monthly surge of 190% leading up to the halving event. As the second-largest meme-based token by market cap, SHIB continues to attract investor interest, significantly influenced by community initiatives like token burning, which help reduce supply and potentially increase value.

According to CryptoQuant, SHIB exchange reserves have dropped to around 150 trillion assets this week, the lowest level registered since February 2022.

A reduction in that metric means fewer Shiba Inu tokens are available for trading, resulting in enhanced scarcity and a potential price appreciation in time, assuming demand rises or stays the same.

In another major development around Shiba Inu, the team behind the project has raised $12 million in a token sale round for building its privacy-focused blockchain, according to a Monday press release.

Floki Inu (FLOKI)

Floki Inu, another key player in the meme coin arena, has gained more than 40% over the past week. However, the meme coin is still in the red over the 14 and 30-day timeframes, being nearly 20% lower over the past 30 days.

Notably, Floki has recently announced Yasin Cengiz, a viral internet sensation with an impressive reach in Turkey and across the globe, as a brand ambassador. Cengiz is followed by 15.6 million people on TikTok and 1.5 million people on Instagram.

Solana Meme Coins

Solana-based meme coins have also seen significant rallies in a market recently characterized by cautious optimism. For one, BONK has gained more than 82% over the past week, becoming the best performer among the top 10 meme coins by market cap.

Other tokens in this category, such as PEPE, dogwifhat (WIF), and MAGA (TRUMP), have registered considerable gains. Pepe has gained an impressive 58% over the past week, while WIF has surged by 30%.

Notably, the Solana blockchain has emerged as a hub for numerous emerging and trending meme coins. According to data from CoinGecko, the Solana meme coin sector has surged by 32% over the past week.

Dogecoin (DOGE)

Dogecoin, the original meme coin, experienced a notable increase in market activity earlier this week. Its trading volume soared shortly after Bitcoin’s halving.

The activity indicates a revived interest in the coin, which currently holds a significant portion of the meme coin market cap.

According to crypto data aggregating website CoinMarketCap, Dogecoin has increased by more than 4% over the past week. However, the meme coin, currently trading at $0.1503, has fallen more than 7% over the past day and more than 17% over the past month.

Altcoins and Meme Coins Poised for Short Squeeze

The completion of Bitcoin’s fourth halving has left traders and investors speculating about the short-term market dynamics. While the spot price of Bitcoin saw a slight increase over the weekend, not much significant movement was observed immediately after the halving event, Singapore-based trading firm QCP wrote in a recent note on Telegram.

In the short term, analysts at QCP anticipate a potential short squeeze led by altcoins and memecoins. These alternative cryptocurrencies have been experiencing persistent negative funding rates, with some reaching as low as -100%.

A short squeeze occurs when short sellers are forced to cover their positions, driving the price of the asset higher due to the sudden surge in demand.

QCP wrote:

“What we could see in the short term is a short squeeze led by altcoins and memecoins, which have seen persistent negative funding.”

The Bottom Line

Popular meme coins such as Dogecoin, Shiba Inu, and Floki Inu have rallied following Bitcoin’s much-anticipated halving event.

It is reflective of a broader trend where altcoins often experience increased valuation following significant developments in Bitcoin’s cycle.

What happens next? Time will tell.

Related Terms

Related Article