In a recent unexpected development in the realm of meme currencies, Cardano-based Snek (SNEK) saw a sharp 200% price increase. Even said, traders and investors should be aware that this rise was merely a brief wick brought on by a shortage of liquidity on the decentralised market and not a fundamental increase in the value of SNEK.
Decentralised exchanges, or DEXes, are characterised by their liquidity mechanisms, which frequently exhibit extreme price variations. Instead than being a reflection of an increase in demand or a substantial shift in market sentiment, the quick price jump in the instance of SNEK was a passing oddity.
The meme currency has undergone a reversal trend, losing almost 33% of its value from its regional all-time high (ATH), like many of its peers. This negative trend is not specific to SNEK and frequently sums up the erratic and speculative character of meme currencies.
It is crucial to emphasise that this price decline is not a sign of a fraud or a rugpull involving SNEK. Instead, it exemplifies the characteristics of the meme coin market, where values are subject to significant swings in reaction to shifts in investor mood, market trends, and the overall state of the cryptocurrency industry.
Although the recent decline might raise some questions, meme currencies’ intrinsic volatility implies that price swings—both up and down—are inevitable along the way. Before entering the meme coin market, prospective investors must recognise this volatility and perform due diligence.
As for SNEK, the neighbourhood is still on guard. Despite the recent price decline, SNEK and other meme currencies on the Cardano blockchain continue to attract attention because of their high TVL, trade volume, and general network activity.
