In recent times, a trend has emerged in certain corners of the cryptocurrency market, where investors are flocking towards microcaps that claim to be the next big thing after popular meme coins.
Tokens such as pepe 2.0, floki 2.0, and bobo 2.0 have gained significant attention within the past week by presenting themselves as new iterations of the well-known pepe, floki, and bobo tokens.
Consequently, trading volumes for these tokens have surged into the millions, attracting substantial liquidity and transforming modest investments into substantial fortunes almost overnight.
However, the lifespan of these microcaps is typically short-lived. Last year, we witnessed a similar phenomenon when hopeful investors placed their bets on articles inspired by the English language, as well as grimacecoin, which was sparked by a tweet from McDonald’s.
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The ability for anyone to create tokens on Ethereum or other blockchains through smart contracts for minimal costs, coupled with the presence of decentralized exchanges, allows for the rapid issuance, liquidity provision, and trading of these tokens shortly after their creation.
For instance, pepe 2.0, currently the most popular among the clones, recorded nearly $7 million in trading volume within a 24-hour period.
Its market capitalization reached a peak of $45 million last week but has since declined to $18 million.
Remarkably, a wallet that invested a mere $900 in pepe 2.0 witnessed its value soar to over $176,000 in less than 24 hours.
This profitable position was cashed out through the sale of 2 ether (ETH) clips as the token’s value continued to rise.
Bubblemaps, an on-chain analysis tool, has highlighted the centralized behavior of some early buyers who likely cornered a significant portion of the pepe 2.0 supply during its launch.
These individuals have been gradually selling their tokens, contributing to the substantial price surge due to heightened buying demand and limited sales from early buyers.
Meanwhile, the original pepecoin (PEPE) remains attractive to investors, as evidenced by substantial purchases that have propelled an impressive 80% rally over the past two weeks.
Notably, Lookonchain data reveals that two wallets acquired millions of frog-themed tokens on Monday, signaling a niche segment of the market speculating on these tokens surpassing dogecoin (DOGE) and shiba inu (SHIB), which are widely regarded as the most popular meme coins, in the foreseeable future.
