The DADDY Tate token price has diverged from Bitcoin and other altcoins this week as it jumped to its highest level since June 15th
DADDY price chart
The token, promoted by Andrew Tate, rose to $0.2290 on Thursday, 170% above its lowest point on June 22nd. This rebound has pushed its market cap to over $113 million, according to DEX Tools.
DADDY’s rise happened at a time when a sea of red has spread in the crypto market, with Bitcoin falling below $60,000.
Other celeb-themed tokens have also retreated. MOTHER, the token promoted by Iggy Azelia, has dropped to its lowest point since June 1st. Similarly, Jason Derulo’s JASON token has dropped to a record low and is down by over 75% from its highest point last week.
DADDY’s token has rallied in a high-volume environment. Data by CoinGecko shows that the daily volume rose to over $31.7 million on Thursday, an increase from $15 million on Wednesday. Before that, the volume was averaging less than $10 million per day.
Daddy Tate’s token rose as the number of holders has jumped to over 48,000 and it could rise to 50,000 if the trend continues.
There was no major news driving the token this week. Therefore, the rally is likely because Andrew Tate has continued to promote the token on X and other social media platforms.
It also rallied as traders continued pushing it hoping that it will achieve a market cap of $300 million. If this happens, Tate has promised to buy and burn $1 million worth of tokens.
— The Real World (@AccessTRW) July 4, 2024$DADDY is outperforming the entire market while every other crypto asset is dumping,
We hope everyone will be ready for when the market conditions become bullish again,
Because once $DADDY reaches a $300M market cap, Tate will also burn $500k worth of the token: pic.twitter.com/P1GWCOSNDp
A token burn is the process where tokens are deposited in an address that cannot be accessed and is a good process of creating value for the remaining tokens. DADDY Tate is also jumping because of the Fear of Missing Out (FOMO) in the market.
Still, there is a risk that this rebound is a dead cat bounce, where an asset in a freefall experiences a brief rebound and then resumes the downtrend.