The price of the viral meme coin CATS has skyrocketed by 690% in a single day. This has taken all crypto investors by surprise. Many regret having missed this opportunity to earn huge shots in the meme coin market.
Even though the price came down by the end of the day, what is baffling the traders is the potential of a meme coin like CATS to rise in price at this amazing rate within a short period.
In this article, we will examine the reasons for the sudden rise in the price of CATS tokens.
What are CATS Tokens?
CATS is a meme token that was launched on the Telegram app and has gained popularity by following in the footsteps of DOGS tokens, another Telegram meme coin. CATS tokens are built on The Open Network (TON).
These meme tokens do not have any inherent utility; they are a fun way for its investors to join and socialize on the Telegram app, connect with other crypto users, and earn cryptocurrencies by winning these simple games.
Another key aspect of the CATS tokens is its dedicated Telegram community. This is a layer 1 platform, therefore it is possible to develop additional layer 2 applications on it.
CATS Price Surge Reasons
The price of the CATS tokens surged 690% growing to the all-time-high of $0.0007238 with the trading volume expanding to $106063.21. This explains the token’s high demand. The tokens saw a 13-fold increase within a few hours.
The major reason behind the sudden, unexpected surge in CATS price is that the token was listed for public sale on various popular cryptocurrency exchanges such as Bybit, KuCoin, Bitget, Haskey, and many others.
The CATS token’s connection with the Telegram platform is another reason that fuels its sudden price surge. The Telegram app has a history of hosting many successful tap-to-earn games such as Hamster Kombat which helps gamers earn cryptocurrencies.
The crypto industry anticipates a boost in user numbers with the release of the CATS meme coins in general. The expected high demand for CATS tokens is also a reason for its sudden price surge.
The general interest of crypto investors in meme coins is also thought to be a cause of the sudden price surge for CATS tokens. Meme coins are easy to invest in because you do not need to be an expert in the technical aspects of blockchain technology or cryptography.
Moreover, tap-to-earn games such as CATS on the Telegram app will give you pleasure and leisure along with easy earning opportunities.
The CATS community is also involved in conservation activities of cats all over the world. So the cat lovers also join the community to support the cause of these cute little animals. The cause behind the CATS tokens is also a reason for its sudden price surge.
Will the Price Rise Sustain in the Future?
This is a rather tricky question without a definite answer. Hours after the 690% price surge of CATS tokens, the price came down to 84%. The price surged and dipped in a matter of hours.
It is difficult to predict whether the CATS tokens will be able to sustain a high price or will the price see a sudden downfall as there are many factors in play. The general volatility of the cryptocurrency market is the major player behind this instability in the price of CATS tokens.
The general cryptocurrency market is overruled by many factors such as price performance, performance in fundamental and technical analyses, on-chain development activities, utility cases, etc. All these factors and more have an impact on the price of CATS tokens from time to time.
Therefore it is difficult to sustain a high price. Moreover, it is impossible to correctly predict when the price will rise high or fall heavily.
The Bottom Line
The 690% price surge of the CATS token shows its ability to bring huge profits to the investor, but the fact that the price rise couldn’t be sustained points to the most feared consequence of crypto investments.
The bottom line is that you should make crypto investments by bearing in mind the risks associated with trading them.
