Memecoins
Crypto: Game Over for Memecoins?
12:30 ▪ 3 min read ▪ by Mikaia A.
The unique sawtooth patterns of memecoins can be both alluring and misleading to inexperienced cryptocurrency traders. These meme cryptocurrencies, inspired by Internet memes, offer quick gains but also steep losses. This article explores the recent phenomenon of memecoin declines and why traders are turning away from these volatile tokens.
Memecoins in Disarray
Traders sometimes get fed up with memecoins to the point of fleeing them At a certain point. Indeed, after a period of euphoria where these meme cryptos saw their values skyrocket, a brutal correction hit the market.
Data from Santiment, relayed by FX Streetwatch CA Memecoins have lost about 30% of their value in June, affected by factors such as the Massive BTC Sale by the German and American governmentsand repayments to Mt. Gox creditors.
Flagship cryptocurrencies like Dogwifhat (WIF), Shiba Inu, BRETT and MOG also saw significant declines.
Recent evolution of meme cryptos:
- Dogwifhat (WIF): -61% since March 31;
- Dogecoin (DOGE): -50% from its annual high;
- Shiba Inu (SHIB): -57% from its peak;
- Brett (BRETT) and MOG Coin (MOG): also affected, at -30%, although less publicized.
Experienced traders know that memecoins are often the first to suffer during market fluctuations due to their speculative nature and low capitalization.
With hopes of a bullish reversal fading, many investors are now choosing to lock in their profits or limit their losses. Crypto Analyst @Ali_charts even suggested on X that Memecoin bull cycle may be oversignaling a phase of market complacency.
The Impact of Celebrity Cryptocurrency Launches
Meanwhile, the growing popularity of the Pump.fun Platform by Solanaspecialized in the celebrity token generationalso played a crucial role in the decline of traditional memecoins.
Traders have been drawn to these new meme cryptocurrencies, siphoning off liquidity from existing projects.
Pump.fun has made it easy to create new coins in the blink of an eye, increasing competition and dilute interest in established memecoins.
Investors are now turning to opportunities perceived as more stable or innovative, leaving behind cryptos with uncontrollable volatility.
Despite this, some traders remain optimisticAccording to data from IntoTheBlock, Over 70% of DOGE, PEPE and FLOKI holders are still in profit despite the recent decline.
However, caution is advised, because market reversals can be as fast as they are brutal in the world of crypto memes.
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Mikaïa A.
The blockchain and crypto revolution is underway! And the day the impacts will be felt on the most vulnerable economy in this World, against all hope, I will say that I had something to do with it
DISCLAIMER
The views, thoughts and opinions expressed in this article are solely those of the author and should not be considered investment advice. Do your own research before making any investment decision.