The meme coin market is in a free fall, with popular cryptocurrencies like Dogecoin (DOGE)and Shiba Inu (SHIB) facing a significant decline. Due to market volatility and a broader decline, the total meme coin market cap fell below $40 billion, which is a signal of a clear decline in investor demand for these coins.
Market crash by over 12%
Last earnest declines meme coins have exposed the inherent fragility of the market, with the value of most coins heavily influenced by speculation and social mood.
According to CoinGecko, the total market capitalization meme coins have plummeted by more than 12% in the previous day, falling well below $40 billion. The market has since rebounded slightly above $40 billion after rising 4.9% in the past 24 hours.
Lookonchain too reported via X (formerly Twitter) that over the past year, the top 10 coins have fallen an average of 63.73% from their peak values. These best meme coins include Dogecoin, which fell by 57.93%, Shiba Inu by 70.86%, Pepe (PEPE) by 58.16% and Dog Wife (WIF) by 70.93%.
Other meme-based cryptocurrencies that have seen significant price declines include Bonk (BONK), Floki (FLOKI)Brett, Popcat, Book of Meme (BOME), and Cat in a World of Dogs (MEW).
On September 1, a cryptocurrency analyst nicknamed “Crash” also shed some featherlight on the current state of the market meme coin market. To crash estimated that 99.9% of meme coin ventures fail, leaving many investors and enthusiasts in the need to seek stability.
The analyst noted that in the current market, just surviving is a notable achievement for a meme coin, as many well-known meme projects have already failed and are now facing a rapid decline to zero. He emphasized that the fall of newer or smaller meme coins was not surprising, as they lacked the maturity and necessary support to succeed on their own.
However, the recent downtrend has also affected more well-known and influential coins such as Dogecoin and Shiba Inu, which were once considered to be spectacular successes in the cryptocurrency market due to their a huge community and popularity.
Crash noted that the market has become saturated with an excess of “projects, LARPs, and degeneracy.” He emphasized that the recent decline in meme coins suggests that equilibrium is being restored, and it is essential for the market to accept the correction, improve, and survive.
Are meme coins really dying?
Over the past week meme coin value fell sharply, underscoring the growing lack of interest among investors. Dogecoin saw its price drop by more than 6% in the previous week, while Shiba Inu fell by more than 7% around the same time, according to CoinMarketCap.
A member of the cryptocurrency community identified as Tyler Durdeth, It was proclaimed that meme coins are dead, indicating that the market could potentially go through an existential crisis like Non-Fungible Tokens (NFTs) in 2022.
Featured image created with Dall.E, chart from Tradingview.com
