Meme Coin Dominance Falls: What You Should Know

Meme coins have undergone a sharp correction in recent days, prompting a sell-off as sentiment plummets. Broader crypto assets also saw similar exits over the same period, leading to a collapse in market capitalization. At the time of writing, the market capitalization is below $2.4 trillion, while meme coin figures have also fallen to $49.9 billion, after hitting highs above $68 billion this year.

This year also saw the Solana meme coin frenzy as tokens hit all-time highs. Inflows into meme tokens in the first quarter of 2024 took off with the approval of the spot

Bitcoin ETFs and accompaniment of institutional interests in the market. Positive sentiments towards crypto assets lead to a surge in meme coins, while low volumes or macro factors will see investors withdraw funds from risky assets.

Meme Coins Collapse Below Altcoins

After seeing rising gains due to user frenzy and volatility, meme coins have taken the biggest hit in the past seven days. Trading volumes fell to $4.5 billion with losses recorded in the previous high-flying categories. New data provided by on-chain analytics firm CryptoQuant shows that meme coins in the altcoin market are facing a steep decline.

Ki Young Ju, founder and CEO of CryptoQuant, explained on X (formerly Twitter) that the focus has now shifted from gambling to fundamentals.

“Memecoin’s dominance in alternative markets is waning. CT would shift from gambling to focusing on fundamentals, similar to a few years ago. Pack your bags guys, it’s over.

Young Ju clarified that while he is bearish on meme coins, he is bullish on Bitcoin.

Asset performance this week

Major meme tokens posted double-digit losses last week before making a slight correction. Dogecoin (DOGE) has fallen 15% in the last seven days while Shiba Inu has seen a decline of 17% in the same period. Dogwifhat, Floki and BONK recorded higher loss levels at 23.6%, 21% and 24.6% respectively. The total market capitalization fell by 4% today due to slight inflows into new tokens.

Read also: The price of BNB moves away from the all-time high: what are the prospects?

David Pokima

David is a financial news contributor with 4 years of experience in Blockchain technology and cryptocurrencies. He is interested in learning about emerging technologies and has an eye for the latest news. Staying up to date on trends, David has reported in several niches including regulation, partnerships, cryptocurrencies, stocks, NFTs, etc. Away from the financial markets, David cycles and rides horses.

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