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The El Hippo meme coin recently burned a major portion of its supply. This action has made the token scarcer and led to increased trading volumes, contributing to the coin’s upward trend.
What is El Hippo?
El Hippo, a meme coin launched in August 2023, rose 450% after launching despite contracting slightly.
The project gained popularity through meme contests, regular airdrops, and biweekly giveaways on Zealy.
The distinctive hippo-themed memes went viral, attracting influencers and news outlets.
Analysts compare the community camaraderie to early-stage DOGE or PEPE, explaining why some investors consider El Hippo in their portfolio.
El Hippo market analysis
The token has been listed on MEXC and recently, Bitget, celebrating this listing with a $54,000 airdrop.
The listing last month saw prices and trading volume spiking to a new all-time high. At its peak, El Hippo traded at $0.0000000133.
This spike was followed by a selloff as users cashed out the proceeds of their airdrop winnings.
The token burn on Dec. 19 added to the positive sentiment as the team burned 2% of the entire supply or 15.7 trillion HIPP valued at $150,000.
Token burns, like the recent one in El Hippo, can benefit existing holders by reducing the overall supply. This scarcity tends to drive bullish price movements.
Given El Hippo’s small market cap below $6 million, it can be more responsive to price trends, making potential price swings more significant than those seen in larger assets.
However, it’s essential to recognize that this dynamic applies to bullish and bearish trends, emphasizing the importance of proper risk management for investors.
Looking to the New Year
El Hippo plans for upcoming NFT releases, a merch store, new listings, and additional airdrops.
The project’s focus on fostering positive sentiment and building a vibrant online community is bullish.
Still, as El Hippo continues on this path, its potential destination in 2024 remains uncertain but optimistic.
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Source: https://crypto.news/el-hippo-price-rises-after-150k-hipp-token-burn/