In the past few days, the cryptocurrency market witnessed a sharp decline. Meme coins like Shiba Inu and Dogecoin have dropped by double digits and this trend has continued. The market capitalization of all meme coins fell by 1% from yesterday to reach $49 billion, at press time. Around the same time, CryptoQuant data shows that over the past 60 days, the dominance of the coins has fallen sharply.
Ki Young Ju, the CEO of CryptoQuant noted that the coins were observing a significant change in the altcoin market. The most recent downturn was caused by investors turning their attention from gambling to fundamentals. He said,
“Meme coin dominance in alt markets is declining. CT would be shifting from gambling to focusing on fundamentals, similar to a few years ago. Pack it up lads, it’s over.”
Assets like Shiba Inu were dipping by 5.2% throughout the past 24 hours. At press time, Shiba Inu was trading at $0.00001799 while Dogecoin was priced at $0.1246 following a 2.9% dip. dogwifhat [WIF] saw a decline of 22% over the past week. Most assets in the meme coin market endured a similar fate.
Also Read: Meme Coins Like Shiba Inu, Dogecoin ‘Cornerstone’ of Crypto Economy
Meme Coin Liquidity Remains High
A report by Kaiko said that the liquidity in the meme coin market has doubled since the beginning of the year. Using the 1% market depth indicator, Kaiko researchers concluded that the liquid of the market peaked in early June at $128 million and then experienced a minor decline.
The report read,
“Despite the recent market correction, meme tokens continue to be among the best performers this year, outperforming Bitcoin and other altcoins. Meme tokens liquidity, as measured by the 1% market depth, has also surged, doubling since the start of the year. It reached an all-time high of $128 million in early June before retreating slightly.”
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