Meme Coin Market Faces Decline as Trading Volume Drops 50%
- Meme coin trading volume drops 50%, falling from $30B to under $14B in a month.
- Leading meme coins like DOGE, SHIB, and PEPE record significant price declines recently.
- Rug pull scams and market cannibalization contribute to declining trader confidence and interest.
The meme coin market appears to be in trouble as trading volume drops over 50% in a month. The data from CoinMarketCap show that meme coin trading volume decreased from $30 billion to below $14 billion. Even leading tokens such as Dogecoin (DOGE), Pepe (PEPE), and Shiba Inu (SHIB) have also been pulled down by the trends.
Dogecoin still occupies the position of the largest meme coin by market cap, which is $56.6 billion. However, it is down by 3.9% in the last 24 hours with the price reaching $0.3847. SHIB, the second-largest meme coin with the total market cap of $15.1 billion, has also declined by 5.15% in its price. Next on the list was Pepe (PEPE), which declined 7.55% to $0.0000216.
Other meme coins like Bonk (BONK), dogwifhat (WIF), and Floki (FLOKI) also experienced significant losses. Bonk dropped by 5.83%, WIF fell by 8.04%, and FLOKI declined by 5.36%. Bonk and WIF currently hold market caps of $2.5 billion, while FLOKI sits at $2.1 billion. Despite recent successes, such as WIF’s earlier price rally, the overall market remains underperforming.
Analysts note that meme coins often cannibalize each other’s market share, which may contribute to declining interest. Earlier this month, smaller tokens like FARTCOIN and POPCAT achieved brief price surges, distracting from losses in established tokens. FARTCOIN spiked 200% before fading, while POPCAT’s performance slowed after dominating November.
The downturn coincides with concerns about rug pull scams, which may have damaged trader confidence. High-profile incidents like Hawk Tuah have added to skepticism within the space. Additionally, data reveals that many traders face consistent losses, especially on platforms where meme coin volatility is pronounced.
Market experts also stress upon the absence of consistent retail activity. This is a strong reason why meme coins thrive during bull markets. New interest has not been sufficient to drive an increase in trading volume to their prior levels.
While a full bear market has not been declared, bearish signals are present. Some speculate that the earlier excitement surrounding altcoins may have contributed to the decline in meme coin dominance. DWF Labs’ $20 million fund to support meme coin creators has also yet to drive lasting growth.
The market outlook remains uncertain. Meme coin investors are closely watching for signs of recovery, as trading activity and price movements continue to stagnate.
The post Meme Coin Market Faces Decline as Trading Volume Drops 50% appeared first on CryptoTale.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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