In a dramatic turn of events, the Solana-based meme coin, Dogwifhat (WIF), has slipped out of the top 50 cryptocurrencies based on market capitalization, indicating a significant downturn in its recent performance.
According to a report by Cointelegraph, on June 23, Dogwifhat's market capitalization experienced a sharp decline of 9% in just 12 hours, plummeting to US$1.60 billion. This decline led to Fantom taking over Dogwifhat's position in the rankings, with Fantom's market capitalization rising by 2.24% to US$1.65 billion.
While some traders suggested that WIF was in an accumulation phase, the market behavior tells a different story. Blockgraze, a pseudonymous crypto trader, mentioned, "Many people talk about how WIF is in their accumulation zone, but I just checked the chart, and it seems like no one is accumulating."
Position Among Meme Coins
Despite facing recent difficulties, WIF remains the fourth largest meme coin based on market capitalization, behind PEPE, which has a market capitalization nearly three times larger at US$4.57 billion. This ranking underscores Dogwifhat's significant presence in the niche meme coin market, despite recent struggles.
According to the latest data from CoinMarketCap, WIF is trading at US$1.62, reflecting a 38% decrease over the past week. This significant drop has impacted the willingness of futures traders to bet on the short-term direction of the token.
Open Interest (OI) in Dogwifhat futures contracts has declined by 25% to US$209.64 million during the same period, as reported by CoinGlass.
Potential Recovery
If Dogwifhat manages to recover by approximately 13% to reach US$1.81 from two days ago, it could result in the liquidation of around US$13.53 million in short positions. Such a recovery has the potential to restore some confidence among investors and traders.
The market sentiment surrounding Dogwifhat has shifted dramatically in recent months. Earlier this year, there were optimistic predictions about the token. On March 14, when Dogwifhat reached US$3 for the first time, Arthur Hayes, former CEO of BitMEX, predicted that this meme coin would rise to US$10.
