In a dramatic turn of events, popular memecoins have witnessed a sharp decline of 20% on Monday, mirroring the broader global market downturn and the plummet in Bitcoin (BTC) prices.
The cryptocurrency market has been hit hard, with leading memecoins experiencing significant losses over the past 24 hours. This recent downturn has altered the trajectory of memecoins, which had shown strong price movements since the beginning of the year. Analysts are now grappling with the question of whether these digital assets can recover from the current slump.
Dogecoin, often considered the flagship of memecoins, has seen a 17% drop in daily trading, while other notable memecoins like SHIB, PEPE, and FLOKI have followed suit with substantial declines. Solana-based memecoins, such as BONK and WIF, have also faced steep declines of over 15% and 24%, respectively. Newly launched memecoins, including BRETT, PONKE, and DOG, have also experienced significant losses, falling into double digits overnight.
According to Coinmarketcap, the overall cryptocurrency market has fallen by 17% in the last 24 hours, with the total memecoin market capitalization dropping by more than 22% to $30 billion. This drastic fall is linked to an unprecedented crash in Japan’s Nikkei N225 stock index, which plummeted by 12.7%.
The global market turmoil has led to a severe decline in Bitcoin and other cryptocurrencies from early Sunday night into Monday morning, resulting in over $1 billion in liquidations within just 24 hours.
Bitcoin’s price dipped below $50,000 for the first time since January, while Ethereum (ETH) fell to $2050 and Solana (SOL) to $109.
As the market continues to experience turmoil ahead of the US stock market’s weekly opening, analysts predict that both stock markets and cryptocurrencies, including BTC, ETH, and memecoins, may face further declines until the market stabilizes, possibly by Tuesday.
Despite the current downturn, there is hope that memecoins may rebound once the selling pressure subsides. However, it is unlikely that all memecoins will reach new highs in the near term. Even if major cryptocurrencies recover, memecoins might struggle to regain their previous gains due to significant liquidity constraints.
Historically, memecoins have taken extended periods to recover from severe market drops. While major memecoins like Dogecoin and Pepe might follow the recovery patterns of BTC or ETH, it remains uncertain whether mid-cap memecoins such as BONK, WIF, and FLOKI will see new highs in the foreseeable future.
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