Benzinga - In 2020 and 2021, Dogecoin (DOGE) became an internet sensation. Elon Musk became a strong proponent of the token, and billionaires were made overnight. Since then, many have been searching for the next major meme coin that will propel them to new financial heights.
With Solana's recovery after issues with FTX Trading Ltd. in 2022 and 2023, many are looking at its chain as the place to find the next big meme tokens. Bonk (BONK) recently made waves as one of the first meme coins on Solana. The token is up tens of thousands of percent since its inception. At one point, Bonk was one of the largest cryptocurrencies, with a market cap of over $1.5 billion.
As the hype for Bonk appears to be slowing, some are looking for the next big meme to go all in on. Some believe that the next big meme coin is dogwifhat (WIF). This token is entirely based on the dogwifhat meme (dog with hat) — a picture of a dog wearing a hat.
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The token exploded in early 2024 after its launch in late 2023. After starting publicly trading for less than $0.10, the price reached an all-time high of nearly $0.50 on Jan. 18, 2024. This coincided with a market capitalization of nearly $500 million. This market cap makes the token one of the largest in the space, nearing the top 100 by market capitalization.
As of Jan. 19, Ethereum Name Service (ENS) is the 100th largest token, with a market cap of $570 million. However, WIF is the 12th largest project on the Solana chain, beating out recently airdropped Jito and automated market maker (AMM) Raydium.
Many see Binance's listing as a reason for the price appreciation. On Jan. 18, Binance announced that it would begin offering perpetual contracts for the token. Essentially, this allows users to speculate on the price of WIF without having to buy the tokens themselves. Users must provide collateral for this exposure, which can be done with cash or other assets, such as Bitcoin.
By allowing users to trade with futures, it brought in a new set of investors and may have pushed the price higher.
While there is no guarantee, seeing this effect on other exchanges could be possible if they also list WIF.
One wallet sold $1 million of SOL to buy $1 million of WIF just before Binance began offering the token. While this investment has lost some since the wallet bought the WIF tokens, the timing is intriguing.
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