Don’t look now, but the meme coin rally is continuing in earnest. Dogecoin (CRYPTO: DOGE), Floki Inu (CRYPTO: FLOKI), and Bonk (CRYPTO: BONK) are each seeing incredible gains during today’s session. As of 3:15 p.m. ET, these tokens are up 16%, 11.7%, and 13.4% respectively over the past 24 hours.
With risk assets (specifically equities) continuing to make new highs on a seemingly daily basis, investors are clearly taking a risk-on approach to the markets. Investments that are more speculative in nature are performing well, as many look to move out on the risk curve to capture more of the market’s upside. For those in the cryptocurrency world, this has meant surging demand for meme coins, many of which have little to no utility outside of being speculative trading vehicles to ride hype-driven waves.
For Dogecoin, which was initially created as a joke to highlight the absurdity of valuations in this space, this token’s current valuation is raising eyebrows. Floki Inu, another dog-inspired token, is following suit. And Bonk, a prominent Solana based meme token, continues to climb the crypto market cap rankings.
As it happens, each of these tokens has a unique catalyst investors are honing in on right now. Let’s dive into what’s driving today’s price action in these speculative assets.
Another day, another double-digit move in these meme tokens
Dogecoin’s recent price movements can generally be described as higher highs and higher lows. The token has been surging and declining on a frequent basis over the past two weeks, with much of this token’s price action (once again) tied to comments made by Tesla CEO Elon Musk about the potential for Dogecoin payments integration for Tesla purchases, as well as future tie-ins with Musk’s X social media platform.
Investors have yet to see any such movement on these fronts, other than commentary Dogecoin bulls have used to create more speculative momentum behind this token. However, Dogecoin’s rise higher is also attracting investment for other dog-themed cryptos, not the least of which is Floki Inu.
Floki Inu’s recent rise over the past week has been tied to plans to provide regulated digital banking accounts, funded with Floki tokens, that will allow for international money transfers. This development suggests the Floki Inu team intends on providing real-world utility to its users, and is certainly intriguing. The project will aim to allow for transactions to take place in U.S. dollars, euros, and pounds, with licensed partners set to facilitate transactions in countries like Canada, Spain, Australia, and the U.A.E.
Whale buying activity for Solana-based meme token Bonk has continued in earnest, with many investors paying close attention to certain investors in this space. One notable so-called whale (holding seven figures or more worth of a specific token) has continued accumulating Bonk in recent weeks, doubling the portfolio position to more than 650 billion. This position, worth around $15 million at the time of writing, has continued to grow. Other retail investors appear to be following suit, given this account’s innate ability to time purchases well (coinciding with previous price spikes).
Can this rally continue?
Considering the range of fundamental, technology-driven catalysts (such as those of Floki Inu) and the other technical and more speculative catalysts being factored in by investors in other memes tokens like Dogecoin and Bonk, it’s clear that the right mix of hype and blockchain development is providing some serious tailwinds to these highly speculative assets.
I have to reiterate, these are tokens I’m simply not interested in. Their moves are likely to continue to remain volatile, and while the overall trend is bullish at the moment, investors have seen what a crypto bear market can do to valuations in this space. Dogecoin, the oldest meme token of the bunch, is still down more than 60% from its previous 2021 peak.
Chasing outsize returns will remain fashionable until it isn’t. Right now, these three tokens are red-hot, but investors certainly should take care to not get burned by holding any position too long.
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Chris MacDonald has positions in Solana. The Motley Fool has positions in and recommends Solana and Tesla. The Motley Fool has a disclosure policy.
Why Dogecoin, Floki Inu, and Bonk Are Surging Today was originally published by The Motley Fool