Ramazan Eles 
Meme coins, led by the dog-themed WIF, are experiencing a surge in price, defying a stagnant market ahead of the upcoming holiday weekend.
While Bitcoin (BTC) hovers around $70,000 with minimal movement in the past 24 hours, the meme coin sector is exhibiting significant volatility. Ether (ETH), Solana (SOL), and Cardano (ADA) all saw minor dips of 1%, while Bitcoin Cash (BCH) extended its Thursday rally with a 4% gain.
Solana-based dogwifhat (WIF) is leading the charge, propelling meme coins to become the most volatile category in an otherwise sluggish market. WIF reached a high of $4 early Friday before retreating slightly.
Data from CoinGecko reveals an impressive 8% average increase for the meme coin category, surpassing growth in sectors like decentralized finance (DeFi), yield farming, and exchange tokens.
This surge finds its roots in Thursday’s speculation surrounding Dogecoin (DOGE) potentially being integrated into a forthcoming payment service for social media application X. However, there’s no official confirmation from the company involved.
DOGE Futures Hit Record High (Dogwifhat)
Bets on futures tracking DOGE have skyrocketed to a record $2 billion, reflecting anticipation of future price volatility with a bullish lean.
Dog-themed tokens like FLOKI and WIF have emerged as potential beneficiaries of the DOGE hype. Notably, WIF surpassed Pepecoin (PEPE) to claim the title of third-largest meme coin by market capitalization, exceeding the $4 mark on Thursday.
Despite the bullish sentiment surrounding meme coins, some trading firms warn of a potential pullback as price movements in Bitcoin and Ether suggest exhaustion.
“The price rally in Q1 has been exponential, and there are signs of fatigue,” commented Singapore-based QCP Capital in a Friday Telegram broadcast. They point to skewed ETH risk reversals leaning towards the downside (-8%) as an indicator of some investor fear. Additionally, high funding rates and forwards suggest speculators are still paying heavily to maintain leveraged long positions.
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