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End of the road for meme coins? Dogecoin suffers heavy losses
Meme coins and other cryptocurrencies are seeing red numbers following a strong downtrend. These events have swept away the bullish momentum over the past two weeks that had hinted at a market recovery in July. The end of July saw a correction that wiped out gains in the meme coin market amid higher projections for Q2 2024. As cryptocurrencies struggle, users are selling assets with large chunks flowing to exchanges.
Meme coins like Dogecoin and Shiba Inu are leading the market and, to some extent, dictating sentiment in related assets. At press time, the cryptocurrency market cap is $2.13 trillion, down 4% over the past 24 hours, while the meme coin market cap has fallen 14% to $44.3 billion. The massive plunge in meme coins compared to other assets has led to differing perspectives on the future of the asset class.
Dogecoin Sees Monthly Losses
Meme coins are volatile assets with rapid price swings in line with market sentiment. This explains the decline compared to the broader cryptocurrency market this week. Dogecoin is trading at $0.1081, a 9% decline today, while its weekly figures have slipped by 13.5%. These figures have caused the asset’s price to plummet, spurring massive sell-offs from the community.
Dogecoin’s monthly numbers continued their downtrend, losing over 33% of their value over the period. This wiped out a significant portion of the meme coin inflows in the last bull cycle. The market cap of
DOGE stands at $15.6 billion, while daily trading volumes amount to $1.1 billion.
Dogecoin holders speculate on future trends in anticipation of a reversal in macroeconomic events.
Broader Meme Coins Go Down
The decline in sentiment is visible in various sectors of the space. The price of Shiba Inu Dog plunged 8.3%, extending their weekly losses to over 13%. Similarly, PEPE, dogwifhat and BONK fell 7.1%, 3.5% and 1.8% respectively, adding to a cryptocurrency downtrend. However, an introduction of interest rate cuts by the Fed could see funds flow into riskier assets.
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David is a financial news contributor with 4 years of experience in Blockchain and cryptocurrency. He is interested in learning about emerging technologies and has an eye for breaking news. Keeping up to date with trends, David has written in several niches including regulation, partnerships, cryptocurrency, stocks, NFTs, etc. Away from the financial markets, David enjoys cycling and horseback riding.