Meme Coins Dominance Falls: What You Should Know
Meme coins have faced a sharp correction in the past days prompting a sell-off as sentiments plunge. Wider crypto assets also recorded similar exits within the same period leading to a plunging market capitalization. The market cap trades below $2.4 trillion at press time while meme coins figures also fell to $49.9 billion after touching highs above $68 billion this year.
This year also saw the Solana meme coin frenzy as tokens rallied to all-time highs. Inflows to meme tokens in Q1 2024 took off with the approval of spot Bitcoin ETFs and accompanying institutional interests in the market. Positive sentiments in crypto assets lead to a meme coin surge while low volumes or macro factors will see investors pull funds out of risky assets.
Meme Coins Crashes Below Altcoins
After notching surging gains due to user frenzy and volatility, meme coins have taken the biggest hit in the last seven days. Trading volumes are down to $4.5 billion with losses recorded in previous high-flying categories. New data from on-chain analytics firm, CryptoQuant shows meme coins in the altcoin market face a streaky decline.
Ki Young Ju, the founder and CEO of CryptoQuant explained on X (formerly Twitter) that the focus has now shifted from gambling to fundamentals.
“Memecoin dominance in alt markets is declining. CT would be shifting from gambling to focusing on fundamentals, similar to a few years ago. Pack it up lads, it’s over.”
Young Ju clarified that while he is bearish on meme coins, he is bullish on Bitcoin.
Some people misunderstood my tweet. I’m bearish on memecoins, not BTC. Long-term bullish on #Bitcoin.
— Ki Young Ju (@ki_young_ju) June 19, 2024
Asset Performance This Week
Top meme tokens saw double-digit losses last week before making a slight correction. Dogecoin (DOGE) plummeted 15% in the last seven days while Shiba Inu posted a 17% decline in the same period. Dogwifhat, Floki, and BONK saw higher levels of loss with 23.6%, 21%, and 24.6% respectively. The total market cap is down 4% today amid slight inflows into new tokens.
Also Read: BNB Price Fades Away From All-Time High: What’s Next?
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