As a seasoned researcher with extensive experience in the cryptocurrency market, I’ve witnessed firsthand the volatile nature of meme coins and decentralized finance (DeFi) tokens. The recent price drops in these assets to multi-month lows are not surprising given the broader macro and industry trends that have emerged. Fear has gripped various market areas, leading to significant outflows from altcoins and meme coins.
Crypto assets and meme coins are experiencing a sharp decline in price, reaching levels not seen since several months ago. The cause behind this downturn can be attributed to broader economic and industry trends, instilling fear across various markets. Meme coins and tokens tied to decentralized finance (DeFi) have been particularly affected due to their heightened sensitivity to market fluctuations.
Bitcoin dipped below the $63,000 threshold, causing a ripple effect and triggering larger withdrawals from altcoins and meme coins. The total value of all cryptocurrencies currently amounts to approximately $2.24 trillion according to recent reports, representing a 4% decrease in the last 24 hours. Meme coins were not exempted, experiencing significant outflows and double-digit percentage drops in their leading assets. With investors expressing pessimistic views, there has been a surge in selling activity.
Meme Coins In the Woods
In Q1 2024, the meme coin sector experienced unprecedented growth, reaching new peaks in response to the cryptocurrency market’s surge. Consequently, the total value of these coins soared near $70 billion. Newly emerging tokens attracted significant investments as optimism among investors increased. However, taking a step back, the current market cap for meme coins stands at around $46 billion, and more than $20 billion worth of coins have been sold off during the recent downturn.
The market performance of Solana-linked, dog-themed, and cat-themed assets has been disappointing lately. For instance, Dogecoin (DOGE), currently the market frontrunner, experienced a 5.4% decrease in the past 24 hours and a more substantial 11% loss this week. Shiba Inu (SHIB) followed suit with a 6% decline today and a weekly drop of 15%. Other assets within this category have seen even larger price decreases, further highlighting the market’s current downturn for these themes.
Wider Meme Tokens Follow
Popular Solana meme coin, dogwifhat (WIF) saw losses of 6.2% and 32% in the last seven days. The huge weekly exits wiped off a part of its market cap as bullish pressure subsided. At press time, WIF trades at $1.64 with a $1.6 billion market capitalization. Daily trading volumes stand at $680 million after a streak of outflows, per CoinGecko data
As a crypto investor, I’ve noticed that FLOKI, BONK, and BOME experienced significant declines of 15.9%, 17.9%, and 14.2% respectively this week. Even the top assets like Bitcoin and Ethereum saw outflows, indicating a broader market downturn.
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2024-06-24 16:47