Following a global market tumble and the massive sell-off, the whole crypto market has taken a hit with leading Memecoins falling over 20% in the past 24 hours. While memecoins have been leading in price action since the beginning of the year, this market correction has significantly altered their trajectory with analysts questioning whether they will ever recover from here.
Dogecoin – often referred as the Bitcoin for memecoins – is down 17% in daily candle while SHIB, PEPE and FLOKI following the free fall. Solana memecoins BONK and WIF have also taken a sharp downtrend with falling over 15% and 24% respectively. Newly launched memecoins segment like BRETT, PONKE, DOG and others have also fallen in double digits overnight.
Memecoins falling over 20% – Coinmarketcap
Memecoins & Crypto Market Crash
The overall crypto market is down 17% in the past 24 hours and the total memecoin market cap has fallen over 22% to $30 billion, according to data from Coinmarketcap. The potential reason behind the latest dump is associated to Japan’s unprecedented market crash as the Nikkei N225 stock index dropped by 12.7%.
This crash has impacted worldwide markets with Bitcoin and other crypto falling drastically from early Sunday night to Monday morning. The cascade has caused liquidation of over $1 billion in crypto markets over the past 24 hours alone.
In the early morning, Bitcoin price fell below $50,000 for the first time since January with ETH marking a low of $2050 and SOL to $109.
Will Memecoins ever recover from this?
As the bloodbath has continued ahead of the US weekly market opening, analysts are expecting stock markets, crypto prices including BTC, ETH and memecoins to plunge even further lower levels until market probably cools off on Tuesday.
In this condition, Memecoins are expected to re-bounce as soon as the selling halts. Although it is unlikely that all the memecoins will approach new highs in the next coming weeks. Even though leading crypto assets recover from the recent loses, it will be a hard climb for memecoins to re-attain their gains due to massive liquidity shortage.
In past we have seen that Memecoins often take much longer to recover after plunging in such market condition. Leading memecoins like Dogecoin & Pepe might follow BTC or ETH in the post-dump surges but its highly uncertain that mid-cap memecoins – BONK, WIF, FLOKI and others – would see new highs from here.
Also Read: Bitcoin Price Drops 10% to $52,000 Amid Global Market Panic
