Without warning, cryptocurrencies have fallen sharply overnight, with prices dropping by 15 to sometimes more than 40%. Bitcoin and Ether have been affected and have dragged down various assets with them, including memecoins, probably the biggest losers of this decline. Let's see together why memecoins are suffering so much from the fall of the cryptocurrency market.
Like Ethereum, memecoins have not been spared from the fall of cryptocurrencies
The cryptocurrency market is going through a tumultuous period, and altcoins are the first to be affected. Overnight, Cryptocurrencies have experienced an impressive fall, notably marked by that of Ether, which saw its price fall by more than 20%.
Memecoins were not spared by the phenomenon, and even showed the biggest signs of running out of steam. One of the most significant examples concerns the Dogwifhat (WIF).
👉 To learn more – What is a crypto meme coin and should you buy one?
While the memecoin associated with a Shiba Inu wearing a pink knitted hat had performed well throughout July, posting an increase of more than 21%, its August is starting differently. The WIF course has plummeted 53% since the beginning of August, and more than 29% in the last 24 hoursThis is one of the biggest drops among the top 100 valued memecoins.
In addition to WIF, dogecoin (DOGE), PEPE, Shiba Inu (SHIBA), and FLOKI have seen their prices drop drastically, by around 20 to 25%following the market pace and Stock market shares that were not spared either.
The price of memecoins with the largest market capitalizations
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Highly volatile, memecoins will have a hard time recovering
Memecoins are one of the riskiest types of cryptocurrencies on the market.They are subject to greater speculation because they rarely carry technical innovation or genuine novelty.
These assets are very volatile, especially if their valuation is low.Their success is often conditioned by the popularity of the meme they represent. Thus, the spectacular fall of the cryptocurrency market, the most significant in almost a year, had a particularly pronounced impact on the price of memecoins.Even assets that have a strong community, such as DOGE and WIF, have not been spared.
⏳ Also read – Bitcoin at $50,000 and Ether at $2,200: What happened?
The price of some memecoins was already in free fall even before the phenomenon became widespreadThis is the case of SHIB, which remains in a delicate situation, having absolutely not been helped by the global fall in cryptocurrency prices.
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Source: CoinGecko
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Surprised by the rise of crypto-assets in the late 2010s, I started to closely follow this sector that fascinates me to the highest degree. When I am not in football stadiums, rugby or handball halls, I work on writing relevant articles about cryptocurrencies and more broadly, Web3.
Zacharie Tazrout
15 articles
