Popcat Memecoin Surges 300% in a Month, But Here’s What You Should Know

In the last month ending on July 21, the cat-themed memecoin on the Solana network, Popcat, has seen a significant surge. According to CoinMarketCap, the token has marked over a 300% increase in that timeframe and could potentially continue its upward trajectory. However, the risks associated with this coin are high.

This year, a bet emerged on Polymarket about which cat-themed memecoin would first reach a $1 billion market cap. Since then, volatile events have led to the current risky scenario surrounding Popcat.

Firstly, it’s important to highlight that there are numerous cat-themed coins, but only a few lead the race for retail investors’ capital. Initially, MEW was leading the path to the $1 billion market cap. However, a strong market manipulation campaign involving certain influencers came into play at this point.

These influencers claimed that the MEW coin was backed by some venture capitalists. This accusation eroded the confidence of retail investors and caused a sharp decline in MEW. Simultaneously, a key bettor abruptly switched to the rival memecoin, Popcat.

Popcat Memecoin Could Face a Sharp Correction

The above scenario gives an idea of the high level of risk involved in investing in this token. Despite its strong growth, it can be said that this is driven by speculation resulting from worrying market manipulation. According to UToday, Ansem and other influencers allegedly earned a quarter of a million dollars for promoting the token.

At the time of writing, Popcat leads the race with a market cap of $970 million. MOG follows in second place with $849 million, and MEW is third with $582 million. If Popcat’s growth continues at the current rate, it will reach $1 billion in a few days.

This means the bet will conclude, and a large portion of speculative capital will exit the scene. The result will be an inevitable price correction for the coin, potentially causing significant losses for late investors.

As of this writing, Popcat’s price is nearly $1 per coin, with a 24-hour performance of almost +5%. Over a week, the token has reported nearly +80%. As mentioned earlier, the token has a high likelihood of continuing to rise. However, upon reaching a $1 billion market cap, the risk of a crash is very likely.