The recent decline in Bitcoin prices from $70,000 to below $64,000 has negatively impacted meme coins, causing significant drops in their prices. As meme coins, both big and small, continue to struggle, questions arise about the future of meme coins. Despite the current downturn, historical trends suggest there might still be hope, especially with crypto experts anticipating a potential upturn for these coins.
Challenges Faced by Meme Coins
An overview of popular meme coins on CoinGecko reveals substantial losses in their value over the past week. The significant decline in meme coin prices compared to major cryptocurrencies like Bitcoin and Ethereum highlights the extreme volatility inherent in these digital assets.
While Bitcoin and Ethereum experienced around a 7% and 5.4% decrease respectively in the last week, meme coins such as Dogecoin and Shiba Inu performed even worse. Dogecoin’s price plummeted by 11.6%, breaching the $0.12 support level, while Shiba Inu saw a 15.6% decline, pushing its price below $0.000018. PEPE, a new favorite among crypto enthusiasts, suffered the least among the top 5 meme coins with a 7.1% fall.
Moreover, Dogwifhat, the primary meme coin for Solana, saw a substantial 32.7% drop in its price to $1.6, with an additional 7.9% reduction in the last day at the time of writing. FLOKI followed with a 15.9% decline over the 7-day period.
Other noteworthy losses include a 17.9% dip for BONK and a 14.2% drop for Book of Meme (BOME) in the same week. The leading meme coin on the Base network, BRETT, experienced a 10.6% decrease, while TURBO, a popular AI-generated meme token, declined by 15.8%.
Prospects for Recovery
The propensity of meme coins to experience more significant declines than the general market underscores their risk profile, making them both alluring and perilous for investors. Their high volatility, which leads to sharp downturns in market corrections, also sets the stage for potential rapid recoveries, attracting traders seeking high returns in a short span.
For instance, during Bitcoin’s 20% rally in May, coins like BONK surged over 100% from their lows, while PEPE outperformed, registering over a 200% increase in the same period.
If industry analysts are correct in predicting an extended bullish market, holders of meme coins may find themselves in a lucrative position once Bitcoin starts its climb towards $100,000. A projected doubling of Bitcoin’s value to $100,000 could trigger significant rallies for meme coins, with potential gains of at least 100% expected for these volatile assets.
