Despite the fact that many members of the crypto community are still waiting for the start of the memcoin supercycle, recent data shows a significant decline in interest in this segment.
Over the past month, popular meme coins such as Dogecoin (DOGE), Shiba Inu (SHIB) and others have lost significant value.
Investors are losing interest in memcoins
Analysts attribute the emerging trend to a shift in investor attention to Bitcoin amid halving and the growing popularity of spot ETFs. Although some market participants were confident that a breakneck rally in the altcoin market was about to begin, their expectations did not match reality.
At the time of writing, the market capitalization of the memecoin sector has decreased by 2.7% over the last 24 hours and stands at $54.6 billion. The daily trading volume of meme coins has dropped to $5 billion.
Despite the overall decline, not all memcoins suffered losses. PEPE and BONK showed growth, adding 15.5% and 4.3%, respectively, over the month.
Coins from the memcoin sector. Source: CoinGecko
Organizations such as venture capital firm a16z have expressed concerns about the sustainability of memcoins and their impact on the reputation of the broader cryptocurrency market. And data analyst Crypto Koryo believes that meme coins have become high-risk and low-reward.
In light of these dynamics, the future of meme coins remains uncertain. Some predict a rise driven by broader growth in cryptocurrencies and increased investment in risky assets, while others warn against the speculative nature of such investments.
Source: Cryptocurrency
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