Investors are once again turning their attention to meme coins, searching for the next major breakout star for 2024. Sponge (SPONGE) and Gorilla (GORILLA) are soaring as Sponge readies for V2 release. Meanwhile, Bonk (BONK), once a popular choice, has dropped by over 60% in the last 13 days.
Sponge V2 aims to build meme coin momentum
SPONGE is set to evolve into its next iteration with the upcoming release of Sponge V2 (SPONGEV2).
Building on the original SPONGE token’s success, which soared from a $1 million market cap to over $100 million within weeks earlier this year, the upgraded version aims to take things to the next level.
According to data from Etherscan.io, there are now 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, like a play-to-earn (P2E) racing game, to boost utility and differentiate itself in the crowded meme coin space.
Existing SPONGE holders can stake their tokens to acquire SPONGEV2, while new buyers can swap Ethereum (ETH) or USDT to automatically enter the staking pool and earn SPONGEV2.
There has been immense interest in this setup, with the SPONGEV2 staking yield currently set at 622% per year.
This means that stakers could earn over six times their initial investment within the first year, assuming yields remain at this level.
With such staking incentives on offer, it’s no surprise investors are flocking to get in early while yields are so high.
Moreover, with the momentum of the original SPONGE behind it, there’s a growing belief that SPONGEV2 could also experience significant price growth once listed on public exchanges.
As such, all eyes are on SPONGEV2 as it prepares to launch and potentially replicate the success of its predecessor.
Gorilla surges by 51%
While SPONGEV2 is grabbing the attention, another meme coin called GORILLA is also making waves, surging 51% in the past two days to hit the $0.0077 level.
This Ethereum-based project, combining a cross-chain swapping system and an IDO launchpad, has gained traction thanks to its genuine utility in the meme coin space.
GORILLA’s December surge is partly driven by its listing on reputable exchanges, such as MEXC and Gate.io.
These listings have boosted GORILLA’s visibility and accessibility, contributing to investor demand.
From a technical perspective, Gorilla token has rejected the strong support zone around $0.0057, which was last tested on Dec. 15.
Moreover, GORILLA’s price is forming a bull flag pattern on the 1-hour chart – a pattern often indicative of another price increase.
Profit-taking sends Bonk into free fall
However, not all meme coins are in the green – with BONK falling 62% to $0.0000134 since Dec. 15.
Since October, the Solana-based meme coin has grown by over 1,000%, bolstered by listings on tier-1 exchanges like Binance and Coinbase.
However, the recent downturn is primarily attributed to profit-taking, a common occurrence after such a sharp rally.
BONK has closed with losses for two consecutive days, and it appears likely to continue this trend for a third day.
More worryingly for BONK holders, the token has fallen below the 20-day exponential moving average (EMA) on the daily chart, 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 cap.
Therefore, despite many investors taking profits, BONK’s strong market position suggests there is continuing interest and demand for the token.
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