November 17, 2024

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Solana memecoin explodes 7,100%: Experts warn of risks

Solana memecoin explodes 7,100%: Experts warn of risks

The cryptocurrency market continues to surprise us with impressive developments. One of the most notable recent events is the massive rise of the memecoin PONKE, based on the Solana (SOL) network. PONKE has been rising at an insane rate over the past few days.

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Social Media Drives PONKE’s Unprecedented Rise

The meme coin PONKE recently reached a new all-time high of $0.67440, after surging 70% in the past week. This represents a staggering 7,100% increase since the beginning of this year. This impressive feat places PONKE as the sixth best-performing Solana meme coin, behind WIF, BONK, POPCAT, BOME, and MEW.

PONKE quickly gained popularity on social media. The attractive designs and humorous memes caught the attention of users, leading to increased trading and speculation of the cryptocurrency. The influx of investors, who wanted to make quick profits, helped push the price of PONKE to unprecedented levels.

Cryptocurrency Analyst Analysis: Meme Coins Can Be Dangerous

Several crypto analysts have commented on PONKE’s recent rally. Prominent crypto trader Bluntz noted that the meme coin is showing a bullish structure after breaking out of the ascending channel. He noted that the upper bound of the channel is now acting as a support level, suggesting further gains are possible. “Many meme charts are now showing the structures we saw earlier with the 100x spike in SOL,” Bluntz said.

Despite the hype, the question remains whether PONKE can sustain its surge, given the nature of meme coins that often originate from memes or viral trends on the internet. Jonas Dovidaitis, co-founder and CEO of PAiT, cautioned that assessing the risks of memecoins requires a different approach than more established cryptocurrencies. The value of this type of cryptocurrency is often based on little more than pure speculation. Therefore, true fundamental analysis in the traditional way is meaningless.

“While traditional cryptocurrencies typically solve specific problems and thus add value, meme coins get their value from the hype, attention, and network effect that this creates. Predicting which meme coin will go viral is like guessing the next viral video,” Dovidaitis explained. To BeInCrypto.

However, Dovidaitis acknowledged the appeal of memecoins, which can offer high rewards for those willing to approach their volatile nature with caution. He noted that investors typically have a customized risk profile when dealing with meme coins, often investing smaller amounts to minimize potential losses while seeking to maximize profits. Occasionally, such an investment will yield exceptional success, but the risks remain high.


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