The up-and-coming dog-themed cryptocurrency, Dogwifhat, or WIF, has certainly made its mark on the altcoin market this week. The digital coin, inspired by the increasingly popular trend of canine memes and developed on the Solana blockchain, began the week with a promising rally, reaching an exhilarating increase of nearly 10% in its value as of Tuesday evening.
However, like any unpredictable thrill ride, the momentum failed to maintain its high, and by Wednesday, the crypto coin saw a significant slump, shedding a staggering 14% of its value.
Embodying the volatile nature of the meme coin market, Dogwifhat experienced a rocket-like ascension soon after its introduction. This youthful entrant witnessed an unprecedented surge in investor interest, driven primarily by its whimsical name and its connection to the internet’s beloved dog memes. Following this fervor, the meme coin’s price skyrocketed, achieving an increase by double digits – a bullish sentiment mirroring the wider meme coin market’s progress, which logged a 1.5% increase over the previous week.
In the span of just one month, WIF’s price demonstrated a steep upward trajectory, soaring by a whopping 90%, a surge that added a significant $0.32, on average, to its current price. This explosive growth indicates Dogwifhat’s potential to emerge as a robust asset, provided it sustains its growth.
Recent data revealed that Dogwifhat managed to eclipse one of the established players in the meme coin arena – Pepe (PEPE), securing the rank of the third-largest memecoin in terms of market capitalization, according to CoinMarketCap data.
However, the jubilation surrounding Dogwifhat’s ascent was all-too-brief. The broader Solana meme coin group, which includes WIF, experienced a dip steeper than the meme coin market in general. Such a downturn suggests factors specific to Solane meme coins, such as network congestion or scalability worries, might be contributing to the price drop.
Yet, in the world of cryptocurrency, turbulence often accompanies optimism, and Dogwifhat’s future appears to be no different. Despite the recent downs, Changelly, an esteemed on-chain metrics and price prediction company, has sparked conversations with its optimism towards Dogwifhat. The company’s bold prediction posits that Dogwifhat could potentially reach a staggering $17 in the near future, marking a potential surge of an astounding 300% from its current price.
However, cryptocurrency enthusiasts should heed caution amongst this excitement. With the digital coin market notoriously fluctuating and meme coins often subjected to meme-driven price volatility, these potential returns are accompanied by considerable risk of significant losses.
Adding to this complexity, the Solana ecosystem, now home to a growing number of projects and customers, has faced its own challenges with network congestion. The congestion issue has forced several cryptocurrency projects to put their token launches on hold in recent days, as revealed by Solana co-founder Anatoly Yakovenko.
Tangling with congestion bugs is an ongoing issue, as stated by Yakovenko on Twitter last Thursday. In response to the current issues, developers of Solana have planned the deployment of a patch scheduled for April 15 to address an “implementation problem” resulting in escalated transaction failure rates.
Mert Mumtaz, the CEO of Helius Labs, helped elucidate the issue at hand, stating that the problem lies not in a “design flaw,” but rather an “implementation bug.” Evidently, as the digital currency market continues its thrilling yet tumultuous ride, participants must brace themselves for potential highs and lows, understanding the risks and rewards the landscape offers.