As a seasoned analyst with over two decades of experience in the financial markets, I have witnessed countless market cycles, bull runs, and corrections. This recent crypto market crash, with its significant impact on memecoins, is reminiscent of the dot-com bubble burst in 1999 or the 2008 global financial crisis.
After a worldwide stock market drop and widespread selling, the entire cryptocurrency market has suffered a blow, with top Meme-based coins plummeting more than 20% in the last day. While Meme-coins have been driving prices since the start of the year, this market adjustment has significantly changed their course, leading analysts to wonder if they can bounce back from here.
In simple terms, the digital currency known as Dogecoin, sometimes called the “meme version” of Bitcoin, has dropped by 17% within a single day. Similarly, Shiba Inu (SHIB), Pepe (PEPE), and Floki Inu (FLOKI) have also experienced steep declines. Additionally, Solana’s memecoins Bonk (BONK) and Wagmi-Inu Finance (WIF) have seen significant downtrends, with BONK falling by 15% and WIF by 24%. Newly introduced memecoins such as Brett, Ponke, Dog, and others have also dipped by double digits overnight.
Memecoins falling over 20% – Coinmarketcap
Memecoins & Crypto Market Crash
In the last 24 hours, the entire cryptocurrency market has decreased by approximately 17%, and the total value of all meme coins has dropped more than 22% to around $30 billion, as reported by Coinmarketcap. A possible cause for this recent decline could be linked to Japan’s unexpected stock market crash, as the Nikkei N225 index fell by about 12.7%.
As a market analyst, I experienced a significant global ripple effect across various financial markets, with Bitcoin and other cryptocurrencies plummeting substantially from late Sunday evening to early Monday morning. This downward spiral led to a massive liquidation of over $1 billion in the crypto market within just the past 24 hours.
During the early hours, the price of Bitcoin dipped beneath $50,000 for the first time since January, while Ethereum hit a low of $2050, and Solana dropped to $109.
Will Memecoins ever recover from this?
With the ongoing turmoil preceding the US stock market’s weekly opening, analysts anticipate that stock markets, cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH) and meme coins, could drop to even lower prices. This potential decline may persist until the market seems to calm down on Tuesday.
As a researcher studying the memecoin market, I anticipate a recovery of these digital assets once the selling pressure subsides. However, it’s important to note that not all memecoins may reach new peaks in the immediate future. The recent losses suffered by leading cryptocurrencies have resulted in a significant liquidity shortage for memecoins, making it challenging for them to regain their previous gains. This climb might prove to be steep due to the current liquidity situation.
Previously observed trend indicates that Memecoins tend to take a considerable time to rebound following a market dip. Notably, major memecoins such as Dogecoin and Pepe may follow Bitcoin or Ethereum in post-dump rebounds, but it’s questionable whether mid-tier memecoins like BONK, WIF, FLOKI, among others, will reach new highs from the current point onwards.
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2024-08-05 11:00