Solana meme coin, Dogwifhat (WIF), has crashed below $2 this week, witnessing double-digit declines as investor interest in the popular meme coin begins to wane.
Dogwifhat Crashes 26%
The price of Dogwifhat is currently trading at $1.8 as the doggy-themed meme coin continues to experience massive bearish pressure from prevailing market volatility. The value of the cryptocurrency has crashed massively, falling by a whopping 25.72% over the past seven days.
The reason for this unexpected decline has been attributed to the recent selling pressures from WIF investors. Data from Solscan has revealed that more than $16 million WIF tokens have been sold off by anonymous cryptocurrency investors over the past week. This includes small amounts of tokens and large sums of hundreds of thousands of WIF coins.
Typically, when a cryptocurrency experiences continuous liquidations from investors, it triggers selling pressures, which results in a decline in its market value. In the context of Dogwifhat which is a meme coin, its price is highly volatile and speculative, making it extremely susceptible to minor market changes and sell-offs.
Unfortunately, more whales are beginning to sell off their WIF token. Blockchain analytics platform, Lookonchain, disclosed in an X (formerly Twitter) post on June 22, that an anonymous whale deposited an astonishing 12.66 million WIF tokens, valued at $23.4 million to Binance.
Generally, a transaction that involves moving coins from a wallet to a crypto exchange often signals the possibility of an imminent sell-off. If selling pressures persist in Dogwifhat, the popular cryptocurrency could see its price falling further to new lows.
Since the beginning of June, Dogwifhat’s performance has been poor, recording more declines than most meme coins in the market after crashing by almost 40% over the past month. The cryptocurrency previously rose to an all-time high of $3.97 in March, flipping Pepe (PEPE) at some point to become the third largest meme coin by market capitalization.
As of writing, Dogwifhat ranks as the fourth largest meme coin, with a market capitalization of $1.8 billion, according to CoinGecko. Four out of the top five largest meme coins by market capitalization including Dogecoin (DOGE), Shiba Inu (SHIB), Pepe and Floki (FLOKI) are witnessing slight gains. However, Dogwifhat continues on its decline trend, dropping by 2.13% in the last 24 hours, according to CoinMarketCap.
What’s Next For WIF?
If selling pressures persist, WIF’s price could witness more declines that could potentially push the cryptocurrency’s price below $1. The founder and CEO of CryptoQuant, Ki Young Ju has expressed bearish sentiment for meme coins in the market.
According to Ju, the meme coin dominance in the altcoin market has begun to wane. He shared a price chart depicting the market performance of meme coins from 2022 to 2024, highlighting that revealed that investors will eventually begin to shift from gambling to focusing on the market’s fundamentals.
He urges investors to leave the meme coin market, indicating that the era of making easy profits from meme-based cryptocurrencies might be over.
Featured image from Sad and useless humour, chart from TradingView
