Meme coins are all the rage right now with names like PEPE, SHIB, BONK, and WIF all up anywhere from ~200-400% over the last week. Even DOGE has seen its price more than double during this latest meme coin rally, adding >$12B to its already-sizable market cap in the process.
This recent surge in meme coins – like BONK and WIF – may serve as kindling for the next leg higher in certain majors – like SOL.
Historical precedents are rather limited, but the last time BONK’s price surged like this – back in December – it took a lot of attention away from SOL, which traded sideways during BONK’s parabolic run up.
The subsequent peak in BONK’s rally, however, marked the local low for SOL’s price. SOL proceeded to gain >50% over the following two weeks, aided by the rotation of money out of the high-flying meme coin. We saw this to a lesser extent back in late October too.
There’s no guarantee this happens again. But if meme coin traders eventually want to lock in some profits, we could see another rotation into majors like SOL, which offer an attractive option for those who still want to maintain long exposure to the general uptrend in crypto markets.
