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The El Hippo meme coin recently exhausted a significant portion of its supply. These actions made the token scarce and increased trading volume, contributing to the coin’s upward trend.
What is El Hippo?
El Hippo, a meme coin launched in August 2023, is up 450% since launch despite a slight contraction.
The project gained popularity through meme contests, regular airdrops, and Zealy’s biweekly giveaways.
The unique hippopotamus-themed meme went viral and caught the attention of influencers and media outlets.
Analysts compare the community camaraderie to early-stage DOGE or PEPE, explaining why some investors are considering El Hippo in their portfolios.
El Hippo Market Analysis
The token was listed on MEXC and recently on Bitget, which celebrated its listing with a $54,000 airdrop.
Last month’s listing hit record highs in price and trading volume. At its peak, El Hippo was trading at $0.0000000133.
This surge was followed by a sell-off as users cashed out their airdrop winnings.
The token burning on December 19th added to the positive emotions in the team. burn 2% of total supply, or 15.7 trillion HIPPs, is worth $150,000.
Token burns, such as the one that recently occurred with El Hippo, can benefit existing holders by reducing the overall supply. This scarcity tends to drive bullish price movements.
Given that El Hippo has a market cap of less than $6 million, it may be better able to respond to price trends, making potential price movements more significant than those seen with larger assets.
However, it is important to recognize that these dynamics apply to both bullish and bearish trends and emphasize the importance of proper risk management for investors.
Looking at the new year
El Hippo is planning future NFT releases, merchandise stores, new listings, and additional airdrops.
The project is optimistic, with a focus on fostering positive sentiment and building a vibrant online community.
Nonetheless, as El Hippo continues down this path, its potential destination in 2024 remains uncertain but optimistic.
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