When the history books are written and we look back on last year we think we can say confidently that meme coins will be what we remember the most from 2023. It felt for a while like they may be dying out. By then, the Pepe Coin (PEPE) explosion came, and suddenly, all the market cared about was meme coins.
As we head into 2024, every crypto news outlet is already filled with stories about what new meme coin is going to be the biggest earner of 2024. It is clear we are in for even more growth from the sector. With that being said we thought we would do something a little different.
Dogecoin (DOGE) has stood atop of the meme coin pile for quite some time now but it does appear its support is waning in the wake of so many innovative projects. Sponge V2 ($SPONGEV2) is the second coming of one of 2023s best performers. Can Sponge V2 be the meme coin that finally catches Dogecoin and replaces it as the top dog?
Let’s examine the project and see why it’s very possible.
Sponge V2- Hoping to build off the massive success of version 1 from last year
We mentioned Pepe Coin in our opening and it plays an important part in the foundation of the meme coin we are going to discuss. Sponge V2 ($SPONGEV2) will be the second iteration of Sponge Token ($SPONGE) a meme that was launched after the success of PEPE reignited the meme coin market.
For those that don’t remember Pepe Coin came out of nowhere and pumped by thousands of percent and made some investors overnight millionaires. This created a California gold rush-like event where those who missed out on Pepe Coin were desperate to find the next big meme coin that would make them rich.
Attention turned to Sponge Token almost immediately however, the meme coin faced a massive barrier. Market conditions had now turned bearish and Pepe Coin was shedding value. Despite this, the meme coin which is based on Spongebob Squarepants, one of the most memed shows on the internet, still pumped by 340%.
Sponge Token was launched with hardly any publicity on a solitary exchange. However, it managed to grow and got listed on 9 other exchanges and gained a large social media following that includes almost 28k followers on X (formally Twitter).
The project also showed some innovation last November when they added staking to the ecosystem. Toward the end of 2023, new projects realized how valuable staking could be to insure against pump-and-dump scenarios and add a layer of utility to their tokens. When staking was added, Sponge Token pumped by a massive 500%.
How the transfer of power to Sponge V2 will be seamless
The staking part of the process is important when we reach Sponge V2. The project has used another stroke of innovation to seamlessly move from the original Sponge Token to Sponge V2. The process is called stake-to-bridge and it ensures the security of version 2 while making sure version 1 sells out.
How it works is, investors who wish to purchase $SPONGEV2 will first need to purchase $SPONGE and stake their tokens. The more tokens they stake and the longer time they stake them the greater the future rewards.
When they purchase version 1 an equivalent amount of version 2 tokens are also purchased for them. Once version 1 is fully sold out, then they claim their version 2 tokens. They will then also start to receive staking rewards from their locked V1 tokens over 4 years.
Sponge V2 clearly has a chance to be a massive meme coin. Version 1 succeeded despite some clear obstacles that version 2 won’t have. The token is being launched with much more publicity than the original and already has a track record of success that will attract investors.
The main difference between both ecosystems is the exciting utility that Sponge V2 will have with its new P2E game. Although we do not have full details yet, it looks like it is going to be an exciting racing game where players can earn native currency. There will be both free and paid versions as well so fun for everyone.
It is clear that this meme coin has the potential to explode. Previous success, innovative new developments, and a built-in social following are all key ingredients. However, can it outperform and even topple Dogecoin (DOGE) as the king of meme coins?
Is 2024 the year Dogecoin is finally toppled?
Despite 2023 being the year of the meme coin Dogecoin (DOGE) did not reap any of the rewards that came with this. The above chart is the last 30-day performance of the supposed king of meme coins, it shows an almost 20% drop in price.
If we go back to this time last year, DOGE is nearly in the exact same spot as it is now. Considering all the innovative rival projects being set up, this is not an industry you can afford to stand still in. Unfortunately, that is what Dogecoin has done. Besides working toward a goal of being accepted as a payment method for X and other companies, the project has more or less stood still.
We are not the only ones predicting rough sledding DOGE. Last week the meme coin dropped below key short-term support in the $0.088 area. It has since been plummeting even further and is fulfilling trends that suggested bearish times were ahead as early as December.
Dogecoin can never be written off because of its huge social following and its ability to rally thanks to that large community. It could represent a good buy-low option if you have faith in the project; however, it is not something we are going to recommend.
So, as we can see from the above analysis, these two meme coins are going in two different directions. The arrow is pointing up for Sponge V2 and down for Dogecoin. It is ambitious to suggest that Sponge V2 could topple Dogecoin at the top of the meme coin ladder, but it is possible. Either way, it should have no problem out gaining DOGE in 2024.
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