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The cryptocurrency market is currently enduring a muted phase, and Memecoins—infamous for their wild price swings—are taking a significant hit. Over the past month, the overall memecoin market capitalization has dropped more than 10%, including a 4.86% decline in the past 24 hours alone, according to data from CoinMarketCap.
Major players in the memecoin space are experiencing substantial losses. Dogecoin (DOGE) is down 4.78%, Shiba Inu (SHIB) has slipped 3.52%, and PEPE has fallen 3.95% in the last 24 hours. Meanwhile, BONK, SPX, and WIF have seen steeper drops—each shedding nearly 12% in the same period.
The weakness isn’t limited to the top names. Other trending memecoins such as FARTCOIN, TRUMP, FLOKI, BRETT, PENGU, and POPCAT have failed to gain meaningful traction over the past week, signaling a broader loss of momentum across the sector.
Analysts point to a significant liquidity outflow as a major factor behind the recent downturn. This outflow has accelerated in recent weeks, exacerbated by macroeconomic tensions such as the tariff war initiated by former President Donald Trump. The liquidity crunch is not exclusive to memecoins; even heavyweight assets like Bitcoin and Ethereum are experiencing notable capital outflows.
Historically, memecoins tend to thrive when new liquidity floods into the market. Earlier this year, when Bitcoin was on the brink of crossing the $100,000 threshold, memecoins witnessed explosive rallies, often posting double-digit daily gains. The current lack of fresh capital, however, has stifled that momentum.
Also Read: Dogwifhat (WIF) Jumps 9% Amid Memecoin Market Rebound — But Bearish Signals Persist
For memecoins to stage a comeback, the market will likely need to see a revival in major cryptocurrencies first. Once Bitcoin and Ethereum rebound and attract new investment, memecoins could once again emerge as high-beta beneficiaries of renewed risk appetite.
Until then, the memecoin sector may continue to tread water, waiting for the next wave of market enthusiasm to arrive.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
