The DADDY Tate token price has diverged from Bitcoin and other altcoins this week as it jumped to its highest level since June 15th. This surge has pushed its market cap to over $113 million.
The token, promoted by Andrew Tate, rose to $0.2290 on Thursday, 170% above its lowest point on June 22nd. This rebound occurred as Bitcoin fell 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. This is up from $15 million on Wednesday and was previously 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. 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.
A token burn is the process where tokens are deposited in an address that cannot be accessed, thereby reducing the total supply. 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 freefall experiences a brief rebound and then resumes the downtrend.
