Memecoins
Meme Coins Solana and Ethereum Drag Investors to a Slow Death, Is There Still Hope?
With the The price of Bitcoin fell from the $70,000 level to below $64,000, Meme coins have understandably suffered as a direct result of this. During this time, meme coins, both large and small, have seen their prices drop significantly, raising concerns about the end of meme coin summer. However, considering previous incidents, there may still be hope, especially as Crypto analysts continue to predict a broader upside for these coins.
Meme coins struggle to resist
A quick look at the list of meme coins on the CoinGecko website Shows that these coins have continued to bleed drastically over the past week. Their level of decline compared to like Bitcoin and Ethereum puts into perspective how volatile these cryptocurrencies can be.
For clarity, in the last week, the price of Bitcoin fell about 7%, with Ethereum posting similar losses of 5.4%. However, when compared to the performance of even the largest meme coins, such as Dogecoin and Shiba Inu, we see how these coins performed even worse.
First, Dogecoin price was up 11.6% during this period, bringing its price below the $0.12 support level. Likewise, the Shiba Inu Price recorded notable losses of 15.6%, also pushing it below an important support level of $0.000018. PEPE, one of the new favorites for cryptocurrency investors, recorded the smallest losses for the top 5 with 7.1%.
Furthermore, the price of Dogwifhat, Solana’s most prominent meme coin, fell 32.7% during this period to $1.6, with losses of 7.9% in the last day alone at the time of writing. Follow it is FLOKIwhich recorded losses of 15.9% in the 7 days.
Other notable mentions include BONK down 17.9% and Book of Meme (BOME) down 14.2% over the same period. BRETT, the top meme coin on the Base network, is down 10.6% and TURBO, arguably the most popular meme coin created by AI, is down 15.8%.
Is there still hope from here?
The tendency of meme coins to fall further than the general market highlights their risk, but it is this same quality that attracts investors to them. Just as they are more likely to fall hard when the market crashes, they are more likely to rise harder than any other coin due to their high volatility. The latter makes it a powerful attraction for investors seeking high returns in a short time.
To put this in perspective, when the price of Bitcoin went up about 20% in May, things like that BONK are up more than 100% from historic lows. PEPPER has been exceptional during this period, increasing more than 200% over the same period.
If crypto analysts are to be believed and the bull run is far from over, then investors in these meme coins may be in for a threat once Bitcoin begins its ascent to $100,000. Self Bitcoin reaches $100,000representing a nearly 100% increase from here on out, expectations are that meme coins will see a strong rally, with nothing less than a 100% increase expected for these volatile cryptocurrencies.
Featured image created with Dall.E, chart from Tradingview.com