The meme coin market is experiencing a sharp downturn, with prominent cryptocurrencies such as Dogecoin (DOGE) and Shiba Inu (SHIB) facing significant declines. Due to market volatility and the broader decline, the total market capitalization of meme coins has dropped below $40 billion, signaling a significant decline in investor demand for these coins.
Market crashes more than 12%
The recent sharp decline in meme coins has exposed the inherent fragility of the market, where the value of most coins is largely influenced by speculation and social sentiment.
According to CoinGecko, the total market capitalization of meme coins plummeted more than 12% yesterday, dropping significantly below $40 billion. The market has since recovered slightly above $40 billion after seeing a 4.9% gain in the past 24 hours.
Related Reading: Shiba Inu Burn: Here's How Many SHIB Tokens Were Burned in August 2024
Lookonchain also reported via X (formerly Twitter) that over the past year, the top 10 coins have fallen an average of 63.73% from their peak value. These top meme coins include Dogecoin, which has fallen 57.93%, Shiba Inu, which has fallen 70.86%, Pepe (PEPE), which has fallen 58.16%, and Dogwifhat (WIF), which has fallen 70.93%.
Other meme-based cryptocurrencies that have experienced significant price drops include Bonk (BONK), Floki (FLOKI), Brett, Popcat, Book of Meme (BOME), and Cat In a Dogs World (MEW #pepecoin🐸
