Memecoins
The Free Fall of Meme Coins: What You Should Know
Crypto assets and meme coins are seeing prices drop to multi-month lows. This was largely triggered by macroeconomic and industry-related factors, with fear gripping various areas of the market. Meme coins and decentralized finance (DeFi) tokens have fallen significantly due to their volatility relative to market forces.
Bitcoin fell below $63,000, prompting larger outflows from altcoins and meme coins. At the time of writing, the cryptocurrency market capitalization stands at $2.24 trillion, a decline of 4% in the last 24 hours. Meme coins also faced similar outflows with huge losses in major assets. As meme token prices plummet into double digits, investors display depressed sentiments leading to major sell-offs.
Meme Coins in the woods
This year, the memetic currency the market hit new highs following a frenzy in the wake of a cryptocurrency rally. As a result, the market capitalization rose to nearly $70 billion in the first quarter of 2024, with new tokens seeing increasing inflows as investor sentiment increased. Putting the losses into perspective, meme coins now have a market capitalization of $46 billion, with more than $20 billion liquidated in the fire sale.
A look at the market shows poor performance of Solana-themed, dog-themed and cat-themed assets. Market leader, Dogecoin (DOGE) fell 5.4% in the last 24 hours and 11% this week. Similarly, Shiba Inu (SHIB) is down 6% today and 15% this week. These outflows from the top two assets underline the situation slightly as larger numbers were recorded from other assets.
Larger meme tokens follow
Solana’s popular meme coin dogwifhat (WIF) has seen losses of 6.2% and 32% respectively over the past seven days. The huge weekly releases wiped out a portion of its market capitalization as the bullish pressure subsided. As of this writing, WIF is trading at $1.64 with a market cap of $1.6 billion. Daily trading volumes totaled $680 million, after a series of outflows CoinGecko data
Similarly, FLOKI, BONK and BOME have fallen 15.9%, 17.9% and 14.2% this week. Major crypto assets such as Bitcoin and Ethereum have also seen outflows.
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David is a financial news contributor with 4 years of experience in Blockchain technology and cryptocurrencies. He is interested in learning about emerging technologies and has an eye for the latest news. Staying up to date on trends, David has reported in several niches including regulation, partnerships, cryptocurrencies, stocks, NFTs, etc. Away from the financial markets, David cycles and rides horses.
The content presented may include the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication assumes no responsibility for personal financial loss.