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In summary
- Dogwifhat (WIF) lost $1.2 billion in market capitalization in three days, trading at $2.83 after falling 12%.
- Having recently been listed on Coinbase and Robinhood, WIF attracted many traders, but is now facing heavy selling after the initial euphoria.
- Bybit led WIF trading with $179 million, surpassing Coinbase with $32 million in daily volume.
Just weeks after the popular Dogwifhat (WIF) memecoin launched on major centralized trading platforms, Coinbase and Robinhood users who invested in the dog-themed coin are likely licking their wounds.
WIF’s market capitalization has fallen by nearly $1.2 billion over the course of three days, while other memecoins in the crypto ecosystem have also suffered losses. At a current price of $2.83, Tuesday’s 12% drop has accelerated recent losses, leaving almost anyone who bought WIF on Coinbase and Robinhood before Tuesday morning in the red—at least on paper.
Both firms listed WIF last month, expanding investor access to the currency in the United States. The decisions came shortly after Donald Trump’s victory in the White House, which is expected to ease the heightened regulatory scrutiny both firms face under the current US Securities and Exchange Commission (SEC).
Memecoins are extremely volatile assets that trade based on little more than sentiment. That said, Dogecoin’s market cap has surpassed $70 billion over the past month, and many Cryptocurrency traders have embraced memecoins this year, boosting recent coins like Peanut the Squirrel (PNUT), Moo Deng (MOODENG), and Just Chill Guy (CHILLGUY) to amazing heights in a very short time.
Unlike centralized exchanges, anyone can create a market for digital assets using a decentralized exchange, making them fertile ground for memecoins like WIF, which went viral among traders earlier this year. However, in 2024, Coinbase and Robinhood remain popular among users who may not be as familiar with decentralized finance technology, or DeFi for short.
Launched in December last year, WIF is barely a year old, but it has had a fairytale run when it comes to memecoins. In February, traders’ enthusiasm was amplified when a knitted pink hat was placed over the Wall Street Bull sculpture in New York. Plans to place the memecoin mascot at the Sphere in Las Vegas materialized in March with $700,000 raised, although without success so far.
Last month, Coinbase chief legal officer Paul Grewal wrote on X (formerly known as Twitter) that WIF had been added to the exchange’s roadmap for listing assets. Hours later, a Coinbase account noted that WIF trading had gone live in the United States, as traders flocked to WIF.
When the price of WIF soared on November 13, jumping 41% to $4.21 from $2.96, the asset’s trading volume exploded to $6.6 billion, according to data from CoinGlass. This represented the memecoin’s most active day in its history, surpassing numbers seen alongside its all-time high price of $4.80 set in March.
Robinhood listed WIF about two weeks later, sparking a similar rally in the memecoin. A 7% surge occurred within seconds of Robinhood’s announcement, raising the price of WIF to $3.47.
“Exchange listings are often good ‘sell the news’ events,” Thomas Dunleavy, partner at venture capital firm MV Global, told Decrypt. “It has a material impact in the short term but a less noticeable impact in the long term.”
The sentiment was shared by Bob Wallden, head of trading at Abra, a cryptocurrency investment platform. He told Decrypt: “Generally, when we have seen tokens listed, there is an initial positive reaction from short-term traders (…) only to have an eventual sell-off.”
Although WIF listings on Coinbase and Robinhood temporarily boosted the memecoin price, Bybit was the leading exchange for WIF trading on Tuesday, according to CoinGecko. Surpassing Coinbase’s $32 million, the international exchange had recorded $179 million in WIF trading volume over the past day. Robinhood does not publicly disclose trading volumes for WIF.
Exchange listings are often coveted among memecoin promoters, but they are not decisive. DOG•GO•TO•THE•MOON’s pseudonymous co-creator Leonidas told Decrypt on Monday that it was “especially exciting” for the memecoin to reach a market capitalization of $966 million because it was achieved “without a spot listing in a level 1 exchange”.
Coinbase and Robinhood did not immediately respond to Decrypt’s requests for comment.
Edited by Andrew Hayward
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