Bitrabo Editorial
The meme coin market is facing a significant downturn with notable cryptocurrencies like Dogecoin (DOGE) and Shiba Inu (SHIB) experiencing substantial declines. The total market capitalization of meme coins dropped below $40 billion due to market volatility and a broader decline, indicating reduced investor demand.
Market Plummets Over 12%
The recent severe downturn in meme coins has highlighted the market’s fragility, where coin values are heavily influenced by speculation and social sentiment. CoinGecko reported a more than 12% drop in the total market capitalization of meme coins, falling below $40 billion, before rebounding slightly with a 4.9% increase in the last 24 hours.
Statistics from Lookonchain revealed that the top 10 meme coins have crashed by an average of 63.73% from their peak values over the past year. This includes coins like Dogecoin, Shiba Inu, Pepe (PEPE), and Dogwifhat (WIF) experiencing significant declines.
Other meme-based cryptocurrencies such as Bonk (BONK), Floki (FLOKI), Brett, Popcat, Book of Meme (BOME), and Cat In a Dogs World (MEW) have also witnessed substantial price drops.
An analyst named ‘Crash’ highlighted that the majority of meme coin ventures are facing extinction, leaving investors and enthusiasts seeking stability. Survival in the current market is considered an achievement, as many projects have failed due to lack of maturity and support. This decline has not spared well-established coins like Dogecoin and Shiba Inu, challenging their previous success in the crypto world.
The oversaturation of projects and a decline in meme coins are seen as a market adjustment towards sustainability, as noted by ‘Crash.’ The market, including prominent coins, needs to adapt, improve, and endure this correction.
Uncertainty Surrounding Meme Coins
Recent weeks have seen a significant drop in the value of meme coins, indicating a waning interest among investors. Dogecoin and Shiba Inu specifically witnessed price plunges of over 6% and 7%, respectively, suggesting a shift in market sentiment.
A crypto enthusiast named Tyler Durdeth has expressed concern that meme coins may be entering a phase of decline reminiscent of Non-Fungible Tokens (NFTs) in 2022, leading to an existential crisis in the market.