Despite the recent downturn in the prices of several notable meme coins over the last 72 hours, the meme coin mania may not be over just yet.
The recent meme coin craze that has gripped the crypto world appears to be losing some steam, at least temporarily. Over the past 72 hours, several prominent memecoin tokens have experienced dips in their market prices. Meme coins on the Solana network have shed 2% in market capitalization within the last 24 hours. Additionally, base meme coins have declined by 3.5% over the same period.
Among the notable meme coin casualties within the Solana ecosystem is Bonk (BONK), a token that has been on a downward trajectory since the start of this week. Its price has fallen from $0.000028 to $0.000023, representing a 17.8% drop.
Dogwifhat (WIF) started to decline from $4.8 three days ago and reached $3.6 yesterday, which was its lowest price, before finally closing at $3.8. Although the token has had a good run in recent days, the 25% drop in three days is quite significant.
Book of Memes (BOME) recently broke out of a resistance at around $0.015; its price corrected yesterday by 16% following the broader crypto trend. So far today, it has continued on a bullish trajectory, but the bulls will need more resilience to keep pushing prices upward, owing to the more general market sentiment.
BONK is not the only Solana-based meme coin experiencing a dip; PEPE, another meme coin on the same network, has also felt the pinch, dropping 0.905% in the last 24 hours.
BRETT has continued to struggle below the $0.08 resistance after a fine run since March 23. The price is seen recovering after a 37% decline that occurred in the last 3 days, but the bulls will need to break above the $0.08 resistance first for a chance to continue the rally.
The Base ecosystem’s meme coin, DEGEN, has had a particularly tumultuous ride. After an over 2000% spike that saw its price soar from $0.0029 on March 21 to $0.065 on March 31, DEGEN has since experienced a dramatic plummet. Over the past three days, the coin has dropped by 50% to $0.32. Although the chart has turned green, showing the bulls are fighting back, there may be a need for more positive triggers to maintain an upward move.
While the reasons behind the memecoin slump are not entirely clear, we can attribute it to the broader downward trend in Bitcoin’s price. BTC exhibits a robust correlation with other cryptocurrencies. When its value increases, other cryptocurrencies tend to rise since there the general sentiment becomes more positive, and conversely, when Bitcoin’s value decreases, altcoins also suffer.
Whales Still Betting on Memecoins
Despite the recent downturn, the memecoin mania may not be over just yet. According to data provided by Lookonchain, a crypto analytics platform, a whale has recently bridged 552 Ethereum (ETH), worth approximately $2 million, to the Base network and spent 551.37 ETH to purchase 38.95 million DEGEN tokens at $0.05 each. This investment suggests that deep-pocketed investors are still betting on the memecoin phenomenon, at least in certain corners of the market.
This whale bridged 552 $ETH($2M) to #Base again and spent 551.37 $ETH($2M) to buy 38.95M $DEGEN at $0.052.https://t.co/KoT9lq98zt pic.twitter.com/Mc67TNYnQi
— Lookonchain (@lookonchain) April 1, 2024
The recent slump could be merely a temporary blip or a harbinger of more sustained turbulence. Regardless, memecoin mania has captured the imagination of investors and enthusiasts alike, and its impact on the broader cryptocurrency landscape is sure to be felt for some time to come.