The meme coin market is undergoing a dramatic downturn, with prominent cryptocurrencies like Dogecoin (DOGE), and Shiba Inu (SHIB) facing substantial decline. Due to the market volatility and broader decline, the total market capitalization of meme coins dropped below $40 billion, signaling a notable decrease in investors demand for these coins.
Market Crash By Over 12%
Recent severe declines in meme coins have exposed the market’s inherent fragility, where the value of most coins is largely influenced by speculations and social sentiment.
According to CoinGecko, the total market capitalization of meme coins plummeted by more than 12% in the previous day, falling significantly below $40 billion. Since then, the market has rebounded slightly above $40 billion after witnessing a 4.9% increase in the last 24 hours.
Lookonchain also reported via X (formerly Twitter) that over the past year, the top 10 coins have crashed by an average of 63.73% from their peak values. These top meme coins include Dogecoin, which has fallen by 57.93%, Shiba Inu by 70.86%, Pepe (PEPE) by 58.16%, and Dogwifhat (WIF) by 70.93%.
Other meme based cryptocurrencies that have experienced significant price drops include Bonk (BONK), Floki (FLOKI), Brett, Popcat, Book of Meme (BOME) and Cat In a Dogs World (MEW).
On September 1, a crypto analyst identified as ‘Crash’ also shed some light on the current state of the meme coin market. Crash estimated that 99.9% of meme coin ventures are being wiped out, leaving numerous investors and enthusiasts scrambling for stability.
The analyst pointed out that in this current market, simply surviving is a notable achievement for a meme coin, as many prominent meme projects have already failed, and now face a rapid descent to a zero value. He highlighted that the collapse of newer or smaller cap meme coins were unsurprising because they lacked maturity and the necessary support to succeed on their own.
However, the recent bearish trend has also fallen on more prominent and influential coins like Dogecoin and Shiba Inu, which were once considered a resounding success in the crypto market due to their extensive community and popularity.
Crash has noted that the market has become overly saturated with excessive “projects, larps and degeneracy.” He emphasized that the recent decline in meme coins suggests that a balance is being restored, and it is important for the market to embrace the adjustment, get better and survive.
Are Meme Coins Really Dying?
Over the past week, the value of meme coins have plummeted significantly, underscoring a rising disinterest among investors. Dogecoin witnessed a price drop of over 6% in the previous week, while Shiba Inu plunged by more than 7% around the same time, according to CoinMarketCap .
A crypto community member identified as Tyler Durdeth,’ has proclaimed that meme coins are dead, highlighting that the market could potentially go through an existential crisis like Non-Fungible Tokens (NFTs) back in 2022.