Synopsis: Popular meme coins or meme-inspired cryptocurrencies Dogecoin, and Shiba Inu are facing a downfall in their value. The recent price drop happened in the past day when Bitcoin surpassed its 1 billionth transaction, regaining investor trust in it.
The recent price drop highlights a great shift in trend. The total market of meme coins combined has fallen, and trading activity has been on the decline, which indicates a shift in investor priorities and might be the end of a period in which meme coins dominated media attention.
The overall market capitalization of meme tokens has decreased during the past day, decreasing 2.7% to $55.48 billion, according to data from CoinGecko.
Leading Meme Coins Leak Value: SHIB Slip, DOGE, and Bonk Worst Hit
The largest drop was experienced by Bonk (BONK), which sank 6% of its overall market value in the previous trading session. Following with a 3.3% loss, Floki (FLOKI) and Memecoin (MEME), which dropped 3% during the same period, tied for third place.
With a 2.1% daily price drop, DOGE, the top meme token by market value, now has a $22.74 billion market cap. Remarkably, DOGE continues to hold a nearly 41% market share in the memecoin sector overall.
On May 6, SHIB, its opponent, was also correcting. Its market cap dropped to $14.29 billion, solidifying its status as the second most popular meme coin. SHIB was down 2.4% on the day.
Meme Coins are Dragged Down by Altcoin Issues: Is the Party Over?
There may be a reality check arriving for the memecoin party. Celebrity endorsements and social media hype drove the rapid rise in popularity of these quirky tokens. Recent price declines, however, point to a change in market sentiment.
Meme coins appear to be being negatively impacted by the weakening in the larger altcoin market. There are many doubts regarding the future of meme coins as trading volumes are dropping and Bitcoin is becoming more and more prominent. Is the memecoin chaos coming to an end, or is this just a short-term correction?
How Does it End?
There may be an end to the trend that dominated headlines, as seen by the recent decline in the prices of meme coins like Dogecoin and Shiba Inu. This drop aligns with both the recovery of Bitcoin and a general softening of the altcoin market.
The decline in market value and trading volume presents a concerning picture for meme coins, even though it’s unclear if this is a long-term trend. It will take time to determine whether this is a transitory correction or the end of the meme coin frenzy.
Crypto markets are a land of ups and downs. Uncertainity is the norm here. One should do their own research before investing.
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