Meme Coins Losing Momentum: What Does December 2024 Really Have In Store?

On December 10, several memecoins, notably Dogecoin (DOGE), Shiba Inu (SHIB), and Dogwifhat (WIF), experienced significant declines, wiping out a large part of the gains made during the recent surge inspired by Donald Trump. This drop brought the total market capitalization of the crypto memecoins market to a three-week low, reaching $119.6 billion.

Crypto: The memecoin market collapses

The losses were particularly pronounced for Dogecoin, which fell by 5.6% in 24 hours, while SHIB recorded a drop of 10.4%. In contrast, Pepe (PEPE) was the only large-cap memecoin to show gains, increasing by 1.7%. Furthermore, the daily trading volume of memecoins nearly doubled, reflecting intense selling pressure. Additionally, open interest (OI) for the crypto memecoins decreased, with Pnut (PNUT) leading the decline, showing a decrease of 30% in 24 hours. The OI of DOGE fell by more than 20%, reaching $3.1 billion, while that of WIF dropped by 27%, to $519 million.

This decline in memecoins is accompanied by massive liquidations in the crypto market, with over $1.7 billion in leveraged positions liquidated in 24 hours. DOGE and SHIB were the hardest hit, with $72.6 million and $22.35 million in long position liquidations, respectively. PEPE and WIF also faced liquidations, but to a lesser extent. This liquidation event is the largest since 2021, marking a significant turning point in the crypto market.

Predictions for December

In December 2024, the predictions for memecoins prices show some volatility. Dogecoin (DOGE) is expected to fluctuate between $0.37 and $0.78, while Shiba Inu (SHIB) and Dogwifhat (WIF) are expected to experience similar fluctuations due to their growing popularity and the excitement around humorous cryptos. However, experts remain cautious. They emphasize that these currencies are subject to significant variations depending on market trends and external influences.

The recent drop in prices of memecoins, notably Dogecoin, Shiba Inu, and Dogwifhat, illustrates the inherent volatility of these assets. The forecasts for December 2024 remain uncertain, highlighting the importance of caution in crypto investments. Investors must therefore stay informed and vigilant against market fluctuations.