Dogwifhat (WIF) has been on a wild ride this week. As of Tuesday evening, its value surged by nearly 10%, however, the canine-inspired cryptocurrency could not sustain the momentum and by Wednesday, it lost 14% of its value.
Dogwifhat’s Aggressive Rise And Sudden Dip
The rollercoaster ride began with a bang. Dogwifhat, a newcomer to the meme coin scene built on the Solana blockchain, quickly drew investor interest. Its lighthearted name and association with the ever-popular dog meme trend fueled a buying frenzy, pushing its price up by double digits. This bullish sentiment echoed a wider trend in the meme coin market, which saw a 1.5% increase over the past week.
WIF’s price has risen by 90% during the past month, adding an enormous $0.32 on average to its present price tag. This rapid rise indicates that if the coin keeps growing, it has the potential to become a reliable asset.
WIF price action in the last month. Source: CoinMarketCap
On March 29, Dogwifhat surpassed Pepe (PEPE) to become the third-largest memecoin by market capitalization, according to CoinMarketCap data.
However, the euphoria surrounding Dogwifhat proved short-lived. The broader Solana meme coin category, which includes WIF, witnessed a steeper decline compared to the overall meme coin market. This suggests factors specific to Solana meme coins, possibly network congestion or concerns about the platform’s scalability, might be contributing to the price drop.
WIF market cap currently at $3.3 billion. Chart: TradingView.com
Dogwifhat’s Future: A Lofty Prediction, But Is It Realistic?
Despite the recent dip, some analysts remain optimistic about Dogwifhat’s future. Changelly, a leading on-chain metrics and price prediction firm, has released a forecast that has set tongues wagging. Their prediction? Dogwifhat could reach a staggering $17 in the near future, representing a potential surge of a whopping 300% from its current price.
This rosy picture, however, comes with a hefty dose of caution. The cryptocurrency market is notorious for its volatility. Meme coins, in particular, are known for their meme-driven price fluctuations, often lacking the underlying utility or strong fundamentals found in established cryptocurrencies. While the potential for massive returns in meme coins exists, so too does the risk of significant losses.
On Bugs And Project Postponements
Meanwhile, as additional projects and customers have joined its ecosystem over the past month, Solana has experienced network congestion.
Anatoly Yakovenko, the co-founder of Solana, talked about the difficulties of “dealing with congestion bugs” on Twitter last Thursday. As a result of the congestion problems, several cryptocurrency projects have postponed token launches in the past few days.
solana’s current issue is not a design flaw, it’s an implementation bug
it is now hitting me that some folks might not understand what we’ve been trying to say by this for the past week
I’ll simplify it (intended for non-technical people)
it is important to make this… pic.twitter.com/fNZzu9f90S
— mert | helius.dev (@0xMert_) April 8, 2024
Reportedly, developers of Solana have scheduled the deployment of a patch for a “implementation problem” that has caused the network’s transaction failure rates to skyrocket on April 15.
According to Helius Labs CEO Mert Mumtaz, the current problem with the network is not a “design flaw,” but the “implementation bug.”
Featured image from Bybit, chart from TradingView