Ramazan Eles 
Solana-based dogwifhat (WIF) continued its two-day rally, leading the meme coin surge ahead of the upcoming long weekend in major markets. Bitcoin (BTC) remained relatively unchanged near $70,000, while other major tokens like Ether (ETH), Solana (SOL), and Cardano (ADA) saw minor dips. The broader CoinDesk 20 index, excluding stablecoins, experienced a slight decline of 0.56%.
According to CoinGecko data, the meme coin category saw an impressive 8% average increase, surpassing gains in sectors like decentralized finance (DeFi), yield farming, and exchange tokens. This surge comes amidst speculations of Dogecoin (DOGE) potentially being integrated into an upcoming payment service for a popular social media application (app X). While there’s no official confirmation from the app’s company, the rumors have fueled the rise.
DOGE Futures and WIF’s Rise
Bets on DOGE-tracked futures reached a record high of $2 billion, indicating anticipation of future price volatility, with a bias towards long positions. Dog-themed tokens like Floki (FLOKI) and WIF benefited from this momentum, with WIF surpassing Pepecoin (PEPE) to become the third-largest meme coin by market capitalization after briefly breaking the $4 mark on Thursday.
Caution Amidst Bullish Sentiment
Despite the bullish outlook, some trading firms expressed concerns about a potential pullback in recent gains, citing signs of exhaustion in Bitcoin and Ether’s price action. Singapore-based QCP Capital highlighted a potential downside risk in a Telegram broadcast on Friday. They pointed to skewed ETH risk reversals leaning negative at -8%, indicating some investor fear. Additionally, elevated funding rates and forwards suggest speculators are paying a premium to maintain leveraged long positions. While QCP Capital remains bullish, they advise caution regarding leverage.
Overall, meme coins continue to steal the spotlight with dogwifhat leading the pack. However, concerns about a potential correction linger as Bitcoin struggles to break above $70,000.