Popular meme coin DogWifHat (WIF) plummeted 12% in the space of 24 hours to trade at $2.85 at the time of writing.
Broadly speaking, all leading meme coins share the same fate today, with market leaders Dogecoin (DOGE), Shiba Inu (SHIB), and PEPE posting similar losses.
Crypto’s novelty coin sector is bearing the brunt of a broader market downturn that has today shaved 6% from market leader Bitcoin (BTC) which was trading at all-time highs earlier yesterday, but now sells at $68,118.
Nearest contender Ethereum (ETH) also shed 5% overnight and changes hands at $3,711.54.
Crypto has been doing well for most of the year-to-date off the back of hype around 11 spot Bitcoin ETFs the SEC approved for trading on January 10.
The ETFs have been very successful. So far they have collectively netted $12 billion, helping Bitcoin set a new all-time high of $73,737.94 yesterday.
On Tuesday, the ETFs took in $1 billion in inflows, with BlackRock’s accounting for the $848 million bulk of it.
However the release that day of last month’s hot US inflation readings appear to have dampened enthusiasm for riskier assets this weekend.
Over on WIF’s trading chart we can see a gradual rally from the end of February that starts to get volatile around a week into March.
The sudden upward momentum on Tuesday March 12 was very bullish but it fizzled out by Thursday.
Given WIF’s Relative Strength Index (RSI) of about 50, it’s not likely to decline unless Bitcoin does. In any case, WIF will find strong support at $2.
WIF Memes Offer Less Utility Than VR Gaming Tokens
WIF is pure meme stock, which makes it a volatile allocation for any portfolio. Meme coins are highly whimsical in nature and their pricing often exaggerates market trends.
For instance, when Bitcoin was rallying last week, meme coins were rallying even harder. Today, when Bitcoin and Ethereum are posting losses, leading meme coins are posting heavier ones.
Investors who want to support the altcoin sector should really limit their exposure to altcoins. Since their value is dictated by their viral appeal and trendiness rather than their underlying protocol, a sudden loss of interest could be disastrous for holders.
Blockchain proponents believe that the future of gaming will incorporate blockchain tech to handle and record payments. Not only will blockchain be more integrated in gaming, it will also be more present in the wider web. Advocates of the idea refer to this iteration of the internet as Web 3.
Another technology that will drive future innovations in gaming and the web is virtual reality (VR). With that in mind, it would seem that the crypto projects that are most ahead of the curve are VR gaming projects like 5th Scape ($5SCAPE).
BTS of Cage Conquest Trailer Making 🥊
.#5thscape #5scape #vrgaming #vrgame #gaming pic.twitter.com/MEZ4bZ261R— 5th Scape (@5th_scape) February 8, 2024
5th Scape is the world’s first virtual and augmented reality cryptocurrency gaming ecosystem. Through the $5SCAPE token, investors can access an exclusive selection of VR games, educational resources, and blockbuster movies.
5th Scape will launch immersive experiences that offer hyper-realistic gameplay. For example, the upcoming title ‘Cage Conquest’ will be an MMA VR fighting game where players can take part in strategic training sessions and online tournaments.
Interested? You can currently pick up $5SCAPE in a the first round of a presale on the project’s website for just $0.00187 a token, but you’ll want to be quick. In just over two days it moves to the next round at $0.00215 a token. The project promises a fixed price at listing of $0.01.
Interested? Buy 5th Scape Here
Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
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