Investors are once again turning their attention to meme coins to find the next major breakout star for 2024. Sponge (SPONGE) and Gorilla (GORILLA) are soaring as Sponge prepares to launch V2. Meanwhile, BONK, once a popular choice, has fallen more than 60% over the past 13 days.
Sponge V2 aims to build meme coin momentum.
SPONGE will evolve to its next version with the upcoming Sponge V2 (SPONGEV2).
Building on the success of the original SPONGE token, which soared from a market capitalization of $1 million to over $100 million earlier this year, the upgraded version aims to take things to the next level.
According to data from Etherscan.io, there are currently over 11,800 unique SPONGE holders worldwide.
Now SPONGE’s developers aim to replicate this viral growth with Sponge V2.
The token will introduce new features, such as Play-to-Ener (P2E) racing games, to increase its utility and differentiate itself in the crowded meme coin space.
Existing SPONGE holders can earn SPONGEV2 by staking their tokens, and new buyers can exchange Ethereum (ETH) or USDT to automatically enter the staking pool to earn SPONGEV2.
With SPONGEV2 staking returns currently set at 622% per annum, there has been tremendous interest in this setup.
This means that stakers can earn more than six times their initial investment within the first year, assuming returns remain at this level.
With these staking incentives on offer, it’s no surprise that investors are flocking to invest early when yields are so high.
Moreover, building on the momentum of the original SPONGE, there is growing belief that SPONGEV2 could experience significant price appreciation once it is listed on a public exchange.
So all eyes are on SPONGEV2 as it prepares for launch and potentially replicating the success of its predecessor.
Gorillas surge by 51%
While SPONGEV2 is gaining traction, another meme coin called GORILLA is also making waves, surging 51% over the past two days to hit the $0.0077 level.
Combining a cross-chain exchange system and an IDO launchpad, this Ethereum-based project has gained traction thanks to its genuine utility in the meme coin space.
GORILLA’s December surge was partly due to its listings on popular exchanges such as MEXC and Gate.io.
These listings increased GORILLA’s visibility and accessibility, contributing to investor demand.
From a technical perspective, the Gorilla token has rejected a strong support zone around $0.0057, where it was last tested on December 15th.
Moreover, the price of GORILLA is forming a bullish pattern on the 1-hour chart, a pattern that often indicates another price rally.
Pursuing profits will cause Bonk to fall into free fall.
However, not all meme coins are green. BONK has fallen 62% since December 15 to $0.0000134.
Since October, Solana-based meme coins have grown by more than 1,000%, driven by listings on tier-one exchanges such as Binance and Coinbase.
However, the recent decline is mainly due to profit-taking, which often occurs after a sharp rise.
BONK closed in the red for two days in a row, and this trend is expected to continue for a third day.
What is more worrying for BONK holders is that the token has fallen below its 20-day exponential moving average (EMA) on the daily chart. This is often considered a bearish signal by technical analysts.
However, BONK remains the world’s second largest meme coin by daily trading volume and third largest by market capitalization.
Therefore, despite many investors benefiting, BONK’s strong market position suggests that there is continued interest and demand for the token.
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