Meme coins are facing the most significant decline in 2024, since this trend has been noticed by new and old investors in the Crypto market. In previous cycles, what happened when this sharp decline in amplitude appeared?
Top meme coins recorded a decrease of 25% – 30% in just 2 days
The market in the last two days recorded a sharp decline, Bitcoin decreased by 14%, market Capital decreased by 18%. And Altcoin is recording a larger decrease margin than Bitcoin. Among Altcoins in particular, meme coins are becoming the subject of the most significant decline.
The meme coin hype in the last two months has caused the meme coin to be overvalued. When there is volatility, meme coins quickly decrease quickly and sharply. CoinmarketCap data shows that the TOP10 leading meme coins in the market such as Doge, SHIB, PEPE, MEME, FLOKI... all recorded a decrease of 25% - 30% in the past week.
- BOME is one of the meme coins that made waves last month and has recorded the strongest decline of nearly 40% this week.
- The meme coin stars of all systems are also in a similar situation. WIF of the Solana system has decreased by 60% since the peak, Degen of the Base system also recorded a decrease of 70% since the peak. Only the newly launched TON meme coin is still decreasing but the damage margin is less.
In early April, the meme coin market Capital exceeded 60 billion USD, but in just 2 weeks, the market Capital has decreased to about 48 billion USD. It can be said that meme coin is facing a real runaway.
Most new investors are "swinging to the peak" of meme coin
In previous cycles, meme coins were often the last to increase, but in the 2024 uptrend meme coins are the ones that attract early cash flow and attract new investors.
- According to community observations, many new investors are attracted by the story of meme coin's price increase hundreds of times, so they have decided to choose meme coin as a big priority in their portfolio rather than Bitcoin and TOP Altcoins. So far, along with the meme coin failure as mentioned above, they are experiencing losses as their first lesson about the market's crazy price fluctuations.
- It is difficult to predict whether meme coin can rise again and create new peaks? But it can be seen that the number of new investors as well as the new cash flow in 2024 coming from retail investors is not much, which may make the acquisition potential not strong. And makes it difficult for meme coin to reach new peaks.
The past shows that it is very rare for meme coins to maintain good and long-term liquidation in the market, with only a few isolated cases such as Doge, PEPE, SHIB... Meanwhile, meme coins are very easy to create and rarely exist. applied technology value.
