Meme Coin Bloodbath: SHIB, DOGE, WIF Plunge Amid a Broader Market Decline
TL;DR
- The meme coin sector has seen a significant downturn, with its market cap shrinking by around 5% in the past 24 hours.
- Despite the downturn, the upcoming Bitcoin halving may trigger a rally, offering a potential rebound for meme coins due to their volatility and tendency to follow BTC’s price trends.
The Meme Coin Sector Flashes Red
The cryptocurrency market has been going through a severe correction in the past several days, with Bitcoin (BTC) briefly nosediving to $60,000 while Ethereum (ETH) dipped below the $3K level.
The situation in the meme coin sector is even more adverse, with its market cap losing around 5% in the past 24 hours and currently equaling around $47 billion. The leading assets of that type – Dogecoin (DOGE) and Shiba Inu (SHIB) are down 27% and 22% on a weekly scale, respectively. Dogwifhat (WIF), Pepe (PEPE), Floki Inu (FLOKI), Bonk Inu (BONK), and many others have also tumbled by double digits.
The few exceptions that have not plunged so substantially in the last seven days are the Solana-based meme coins – Slerf (SLERF) and Cat in a Dogs World (MEW).
Earlier this week, the latter witnessed a 100% daily price spike, while its market capitalization briefly exceeded the $500 million mark. The rally happened shortly after the leading crypto exchange OKX allowed trading services with MEW.
Is Another Bull Run in the Cards?
While the current negative trends may discourage some traders, they should keep in mind that the meme coin sector is highly volatile and could experience a fresh resurgence in the near future.
One essential factor fueling a substantial revival might be the approaching Bitcoin halving. The event, following which miners will start receiving twice less BTC for validating blocks on the blockchain, is scheduled for tomorrow (April 19).
The halving has been followed by a massive bull run for the primary cryptocurrency and the entire market in the previous years, with many analysts expecting the same scenario in the coming months. This could result in a rally for numerous altcoins and meme coins since they often follow the price trajectory of BTC.
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