Tuesday did not turn out to be an ordinary day as meme-inspired digital assets gained the interest of investors. Notably, according to Santiment, one of the leading crypto analytics platforms, there was increased popularity and market capitalization of meme coins that defied the overall trend of a relatively quiet market.
Top performers included $PEPE, $FLOKI, and $WIF, which ran up by an expeditious 63%, 44%, and 43%, respectively. Such performances not only attracted the attention of investors but also raised curiosity among new entrants who wanted to get a piece of this growing frenzy in cryptocurrencies.
However, experienced investors and market analysts are warning against over-enthusiasm for these meme coins. But the thrill of quick gains may be attractive, yet sudden value spikes driven by fear of missing out (FOMO) can often signal instability within the broader crypto landscape.
Looking at the numbers more closely, data from CoinMarketCap reveals a story of meme coins’ meteoric rise in recent sessions. All these digital assets had a total market cap of $ 26.5 billion which increased by 8% propelled by strong recoveries that lasted for 24 hours. Furthermore, trading volume during the same period rose by an astounding 89% to hit $6 billion, underpinning accelerated interest and activity in relation to meme coins.
PEPE Dominates Trends
In fact, amongst the frenzy surrounding these meme coins, some eyebrows were raised by recent Twitter activity from Lookonchain that fueled speculation. The tweet showed some notable transactions involving $PEPE that demonstrated both good returns and strange withdrawal patterns.
For those interested in profit-taking moves, one tweet reveals a number of wallets reflecting cashing out activities worth $4.37 million and another wallet depositing a considerable amount of $PEPE on Binance making a huge profit of nearly $515,000 within just six hours—an amazing 97% increase.
Furthermore, in another tweet brought out by Lookonchain, there was a very interesting withdrawal of $PEPE tokens worth $2.76 million from Binance just before the price of $PEPE went up. Notably, the wallet that executed this transaction had been inactive for over 650 days leading to queries about why it became active all of a sudden.
However, nowadays, analysts and commentators are at odds with each other as they wonder whether these trades indicate smart trading tactics or insider trading. When it comes to speculation related to the timing and size of these transactions, there is a need for vigilance and caution in the digital currency volatile realm.
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