Memecoins
The end of Memecoin euphoria, room for solid projects
Tue June 18, 2024 ▪ 3 min reading ▪ by Fenelon L.
The crypto market is experiencing a significant correction, with a particularly pronounced decline for memecoins. As investors look to stronger assets, are we seeing a paradigm shift in the sector?
The Memecoin debacle
THE crypto market recorded a 3% decline over the past 12 hours, with total capitalization hitting its monthly low of $2.48 trillion. However, memecoins suffered the most, with double-digit losses for most of them.
Kyle Chassé, Bitcoin pioneer, Underlines on X the speed at which investors turn away from these speculative assets. He calls this movement a “flight to quality,” where traders now favor crypto assets with a clear function or purpose.
According to CoinGecko, the market capitalization of memecoins fell by 14%, to $48.8 billion. The MAGA TRUMP coin was hit the hardest with a 34% drop, while others like dogwifhat, Brett and Book of Meme also saw losses of over 14%.
Even industry leaders like Dogecoin, Shiba Inu, and Pepe were not spared. Only the Runes-based token DOG-GO-TO-THE-MON has managed to stay in the green over the past seven days.
A widespread correction
While memecoins are the most affected, the decline affects the entire altcoin market. Solana lost 7%, falling to $132, while Cardano fell 7.8% to $0.37.
Other assets like Avalanche (AVAX), Uniswap (UNI), Internet Computer (ICP), and Near Protocol (NEAR) also suffered. Bitcoin, meanwhile, has found support around $65,000 but remains stuck in a sideways channel for three and a half months.
This generalized correction at this stage calls into question the idea of a “flight towards quality”. Nonetheless, the steeper decline in memecoins could be a sign of a change in mindset among investors.
After a period of speculative euphoria, the market seems to be maturing and looking for projects offering real added value. Only time will tell if this trend continues or if the appetite for risk will take over.
The memecoin debacle could mark a turning point for the crypto industry. While investors seem to favor more solid assets, it remains to be seen whether this “flight to quality” will be confirmed over time.
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Fenelon L.
Passionate about Bitcoin, I like to explore the intricacies of blockchain and cryptos and I share my discoveries with the community. My dream is to live in a world where privacy and financial freedom are guaranteed for everyone, and I firmly believe that Bitcoin is the tool that can make this possible.
DISCLAIMER
The views, thoughts and opinions expressed in this article belong solely to the author and should not be considered investment advice. Do your own research before making any investment decisions.