The Meme Coin Freefall: What You Should Know
Crypto assets and meme coins are witnessing a price drop to lows not recorded in several months. Macro and industry-related factors largely sparked this with fear gripping various market areas. Meme coins and decentralized finance (DeFi) tokens have plunged significantly because of their volatility to market forces.
Bitcoin dropped below $63,000 occasioning wider outflows from altcoins and meme coins. The crypto market cap stands at $2.24 trillion at press time, a 4% drop in the last 24 hours. Meme coins also faced similar outflows with huge losses in top assets. As prices of meme tokens plunge over double-digits, investors mark low sentiments leading to major sell-offs.
Meme Coins In the Woods
This year, the meme coin market hit new highs following a frenzy on the back of a rally in crypto assets. As a result, the market cap spiked close to $70 billion in Q1 2024 with new tokens recording surging inflows as investor sentiment rose. Putting losses into perspective, meme coins now have a market cap of $46 billion with over $20 billion liquidated in the sell-off.
A look at the market shows a poor run in Solana-themed, dog-themed and cat-themed assets. Market leader, Dogecoin (DOGE) is down 5.4% in the last 24 hours and 11% this week. Similarly, Shiba Inu (SHIB) dropped 6% today and 15% this week. These outflows by the top two slightly underscore the situation as larger numbers were recorded by other assets.
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
Similarly, FLOKI, BONK, and BOME plummeted 15.9%, 17.9%, and 14.2% this week. Top crypto assets like Bitcoin and Ethereum also saw outflows.
Also Read: BTC Price Might Drop To $60K; Here’s Why
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