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The El Hippo meme coin recently burned a significant portion of its supply. This action made the token scarcer and caused an increase in trading volumes, contributing to the coin's bullish trend.
What is The Hippopotamus?
The Hippo, a meme coin launched in August 2023, rose 450% after its launch despite contracting slightly.
The project gained popularity through meme contests, regular airdrops, and bi-weekly giveaways on Zeal.
The distinctive hippo-themed memes went viral and attracted influencers and media outlets.
Analysts compare community camaraderie to DOGE or PEPE in their early stages, which explains why some investors consider El Hippo in their portfolio.
Market analysis of The Hippopotamus
The token has been listed on MEXC and recently on Bitget, celebrating this listing with a $54,000 airdrop.
Last month's listing caused prices and trading volume to reach a new all-time high. At its peak, El Hippo was trading at $0.0000000133.
This surge was followed by a sell-off as users cashed out their profits from the airdrop.
The token burn on December 19 added to the positive sentiment as the team Burned 2% of the total supply or 15.7 billion HIPPs valued at $150,000.
Token burns, like the recent one at El Hippo, can benefit existing holders by reducing the overall supply. This shortage tends to drive upward price movements.
Given El Hippo's small market capitalization of less than $6 million, it may be more responsive to price trends, making potential price swings more significant than those seen in larger assets.
However, it is essential to recognize that this dynamic applies to both bullish and bearish trends, emphasizing the importance of proper risk management for investors.
Looking forward to the new year
The Hippo plans upcoming nft drops, a merchandise store, new listings, and additional airdrops.
The project's focus on fostering positive sentiment and building a vibrant online community is optimistic.
Still, as El Hippo continues down this path, its potential fate in 2024 remains uncertain but optimistic.
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