Crypto: Memecoins In Crisis, Dogecoin And Shiba Inu Are Suffering Tremendously

The cryptocurrency market saw its value plummet by nearly 30% at the start of August, and the hemorrhage seems far from over. Both Bitcoin and altcoins are struggling, and memecoins are no exception. With a drop in their market capitalization below the $40 billion mark, Dogecoin, Shiba Inu, and their counterparts see their popularity waver. But beyond the numbers, what does this really mean for investors?

The Memecoin Market in Freefall

Three months ago, memecoins exploded the crypto market and proudly surpassed $62 billion in market capitalization, positioning themselves as the most dynamic sector in the crypto world. These digital currencies, born from internet jokes, have nonetheless seen their market capitalization collapse below $40 billion.

Dogecoin, once the undisputed leader, has dropped by nearly 58%, while Shiba Inu, its loyal companion, has plunged by 70%. The market’s volatility has spared none of these cryptos, leading to a wave of disinterest among investors.

• 63.73%: This is the average decline of the top 10 memecoins in one year;
• Dogecoin: -57.93%; 
• Shiba Inu: -70.86%;
• Bonk, once a rising star, has plummeted by 25%.

As highlighted by an analyst named “Crash“, the market has become saturated with ephemeral projects and excessive speculation. This correction, though painful, could be beneficial for a sector that has become unmanageable. “Survival is already an achievement for a memecoin today,” he notes.

If ur a memecoin

Not dying is winning right now

99.9% of projects are being wiped out

Think (fill in the blank) 🤣

All pretty much shit the bed str8 to zero

There’s no shame in shitting the bed when ur just a little baby coin

Baby’s can’t survive on their own

They need…

— Crash (@CrashiusClay69) September 1, 2024

Cryptos and the Illusion of Stability

As the cryptocurrency market as a whole goes through a period of turbulence, altcoins are not left out. Despite a few sporadic jumps, the context remains uncertain. 

Memecoins, with their extreme volatility, seem to accentuate this instability. Some observers even believe these tokens are delaying the arrival of altseason, the period when altcoins outperform Bitcoin in terms of performance. For others, these movements could reflect a necessary maturity phase in a still-young market.

The poor performances of memecoins raise the question: is this a temporary adjustment or the end of a speculative bubble? The number of failing projects, associated with tokens without real utility, has significantly increased, rendering the prospects uncertain. 

Despite everything, some continue to believe in a rebound, provided the market sheds its excesses and regains some discipline.

In any case, the idea that memecoins seem to delay the much-anticipated altseason with their poor performances is not without relevance in this tense crypto market context.