Memecoins — cryptocurrencies with no fundamental value except entertainment and speculation — appear to be on shaky ground.
What Happened: Memecoin market capitalization increased 0.3% over the past 24 hours, reaching $22.5 billion, according to Coingecko.
Here's a look at some of the major memecoins performed over the past week:
- Dogecoin (CRYPTO: DOGE) and Shiba Inu (CRYPTO: SHIB) declined around 1% over the past week.
- MAGA Memecoin (CRYPTO: TRUMP) was the standout gainer with a 21.1% weekly increase
- Pepe (CRYPTO: PEPE) saw a 6.9% surge
- Floki (CRYPTO: FLOKI) reported a 4.3% rise.
- Myro (CRYPTO: MYRO) experienced a significant 32% drop
- dogwifhat (CRYPTO: WIF)
- Bonk (CRYPTO: BONK) witnessed declines of 14.6% and 12.6%, respectively.
According to The Block, citing Nansen analysts, the underperformance of memecoins could be attributed to the current strength of core cryptocurrencies like Bitcoin and Ethereum.
These established tokens not only attracted investor attention but also capital. The reliance on social media trends and the lack of fundamental value contributed to the subdued performance of memecoins.
Also Read: Solana Drops 9.9%, Solana Memecoins Tank Over 20% - Is This The End Of The Dogecoin Killers?
Why It Matters: While the crypto market has been brimming with optimism since the ETF approval and the Bitcoin halving in sight, the most established memecoins have not kept up the pace.
However, Bitcoin and Ethereum, are up 21% and 28% year-to-date, respectively while Dogecoin and Shiba Inu are down 5.7% and 8%, according to Marketwatch data.
Despite these fluctuations, some analysts have expressed optimism regarding the potential of certain memecoins in the current market scenario.
Crypto chart analyst, Ali Martinez predicts a 34% surge as the first pit stop for Pepe and then a further rally.
Crypto trader and technical analyst Mags tweeted:
$PEPE
— Mags (@thescalpingpro) February 22, 2024
Accumulated a small bag of PEPE for my bull market bag..
possible shiba of this cycle ? 🤔#altcoin pic.twitter.com/pI7tntiSmE
Dogecoin rise, another crypto analyst, tweeted:
$FLOKI looks primed to be THE #memecoin of this cycle.
— Dogecoin Rise 🌎🚀🌕 (@DogecoinRise) February 23, 2024
We've seen what $DOGE and $SHIB did in past cycles, and Floki will be the play to watch this run IMO.
You don't want to fade it. https://t.co/WZIuw9K4yN
"Trade Signals provider" Steph Is Crypto commented on Myro, saying the chart is forming higher highs and higher lows. He predicts "another all-time high in the coming weeks or months" based on his reading of the charts.
Recent memecoins have been soaring in popularity, often associated with events or celebrity names, yet lacking real-world utility or applicability.
That has not stopped speculators from trying their hand at even the most speculative ones, such as an Nvidia memecoin.
Read Next: GameStop, Dogwifhat And 'Dogecoin Killers' - How Memecoins Teach A 'Skill To Succeed' In Crypto
Image: Pixabay
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