Cryptocurrency assets have been subject to many fluctuations this week, including those of Bitcoin (BTC) and Ethereum (ETH). Yet, one sector is defying these market declines: meme coins. These tokens, so named for their widespread usage on social media, have exploded in growth amidst the current volatility, leading to meteoric valuations and impressive gains for investors.

This surge in meme coin popularity has resulted in some of these tokens dubbed "self reported" or "peak coins" now being counted among the top performers in the cryptocurrency market. Leading this charge is Pepe, a newly launched 5.9 trillion coin which, since its launch last weekend, has surged by an astonishing 21,000%. According to CoinMarketCap, the total value of PEPE is approximately $94.6 million. SmartMoney, the investor credited with the purchase, is now a paper millionaire in light of the tokens current price.

Furthering the growth in meme coins, is BOBO, a supposed 'next level' Pepetoken launched on April 20. Despite warnings of scams and rug pulls from certain parties, these tokens have still seen impressive upticks in value. Similarly, Baby Doge Coin (BABYDOGE), a spin-off of Dogecoin, has risen to a total market capitalization of $331,276,266.

These assets, often considered 'hot potato' investments, carry heavy risk for investors, warns Santiment. However, the insights their gains offer into the cryptocurrency market at large makes their study worthwhile. Santiment notes that these meme coins have a notable correlation with market tops and falls, with increased social media activity signaling when traders should take appropriate caution.

Given the variance in meme coin valuations and the speed of which they can expand, an evaluative approach should be taken when considering any investment. All potential investors should assess the risk, understand their entry and exit points and always remain mindful of spikes in social activity centered around such tokens.



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