The world of cryptocurrencies has recently witnessed a significant downturn, particularly impacting meme coins. Among these, Dogwifhat (WIF) experienced a substantial decline of 18% in the past 24 hours, emerging as the weakest performer in this period. This downturn pushed WIF's market value below the crucial $3 billion mark, bringing it dangerously close to losing its position as the fourth-largest meme coin to FLOKI.
Impact on Meme Coins
The decline in WIF is part of a broader trend affecting meme coins collectively. Major meme coins like Dogecoin (DOGE), Shiba Inu (SHIB), and Pepe (PEPE) also suffered notable losses, although less severe than WIF. DOGE, SHIB, and PEPE saw declines of 9.7%, 7.5%, and 11.3%, respectively. According to CoinGlass data, this downward trend resulted in meme coin investors losing over $20 million in long positions within the previous day. Overall, the cryptocurrency market contracted by 3.2%, with Bitcoin (BTC) itself witnessing a 3.5% decrease.
The sharp declines in meme coins are indicative of the most severe market drop since mid-April. Market liquidation soared to $415 million, marking the most substantial liquidation event since April 13, 2024. This widespread sell-off underscores heightened market volatility and investor anxiety.
Rise of Small-Cap Meme Coins
Interestingly, amidst the challenges faced by major meme coins, some smaller meme coins displayed resilience and growth. For example, the Basel-based meme coin Basenji (BENJI) surged by 33% in a single day, reaching a market value of $70 million. Similarly, Chompcoin (CHOMP) recorded a 20% increase. These advancements highlight the unpredictable nature of the meme coin market, where smaller tokens can sometimes outperform their larger counterparts.
Conversely, meme coins themed after WallStreetBets encountered significant setbacks. The meme coin GME, named after the GameStop stock that gained attention during the Reddit trading frenzy, plummeted by 33%. This substantial decline coincided with a presentation by Roaring Kitty, a prominent figure in the Reddit investor community, disappointing cryptocurrency enthusiasts.
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