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Meme Coin Activity and Prices See Significant Drop: What Next?
Meme coins have been one of the most popular narratives in the first two quarters of 2024. However, there has been a significant cooling in their market after the intense activity of the “spring”.
In fact, recent findings suggest that only a handful of meme coins have seen gains in the past 30 days, and those are relatively lesser-known. While popular ones are struggling to gain traction.
Meme Coin Frenzy Fails
According to the latest observation shared by IntoTheBlock, the frenzy around meme coins has significantly subsided, with only a few showing positive price performance.
The values of lesser-known tokens such as doginme, Kimbo, Turbo, Dogelon Mars, and Coq Inu increased by 18%, 16.97%, 15.70%, 11.57%, and 10.1%, respectively, during this period.
Meanwhile, OG meme coin Dogecoin (DOGE) closed with a modest 2.6% decline over the past month. Shiba Inu (SHIB), on the other hand, is down nearly 8%. PEPE is also in the red over the same time frame.
This move indicates a period of consolidation or reduced interest in speculative meme coin investments, as per IntoTheBlock. The crypto analytics platform also speculated whether the market would witness another wave of explosive price movements in the meme coin sector.
“After the meme coin-spring peak, the meme coin frenzy has significantly subsided. In the last 30 days, only a handful of meme coins have shown positive price action. Do you think we will see another wave of explosive price action?”
Meme Coin Scams
Since the beginning of this year, the Solana blockchain has seen a surge in meme coin creations, particularly celebrity-themed tokens. Cryptocurrency investors have seen a flurry of launches as the market has recovered, but recently statistics paint a bleak picture.
In fact, celebrity-backed meme coins on the Layer 1 blockchain plummeted 94% in the first month since their launch. About 50% of these tokens lost 99% of their value from their peak prices. This essentially highlighted the speculative nature of this asset class, especially those that rely on celebrity endorsements for investment.
For example, renowned on-chain investigator ZachXBT recently linked convicted British hacker Gurvinder Bhangu to the hacks of Sydney Sweeney and Bob Odenkirk’s X accounts. These accounts were then used to promote Solana, SWEENEY, and SAUL-based tokens in pump-and-dump schemes.