The cryptocurrency market has been experiencing a significant downturn in the past few days, with meme coins like Shiba Inu and Dogecoin leading the decline. According to data from CryptoQuant, the market capitalization of all meme coins has fallen by 1% to reach $49 billion at press time. Additionally, the dominance of meme coins in the altcoin market has seen a sharp decrease over the past 60 days.
Ki Young Ju, the CEO of CryptoQuant, pointed out that investors are shifting their focus from gambling to fundamentals, leading to the recent downturn in meme coin dominance. He stated, “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 have seen a 5.2% dip in the past 24 hours, trading at $0.00001799, while Dogecoin has dropped by 2.9% to $0.1246. Other meme coins like dogwifhat [WIF] have experienced even larger declines, with a 22% drop over the past week.
Despite the recent market correction, a report by Kaiko revealed that liquidity in the meme coin market has doubled since the beginning of the year. The report stated that meme tokens continue to outperform Bitcoin and other altcoins, with liquidity reaching an all-time high of $128 million in early June before a slight retreat.
Overall, the dip in dominance of meme coins like Shiba Inu and Dogecoin reflects a broader trend in the cryptocurrency market, as investors shift their focus from speculative trading to more fundamental analysis. As the market continues to evolve, it will be interesting to see how meme coins adapt to these changing dynamics.