Meme Coin Market Takes a Hit as Crypto Market Dips
The recent downturn in the crypto market has had a significant impact on the meme coin market, causing major players like Dogecoin (DOGE), Shiba Inu (SHIB), and Bonk (BONK) to experience substantial losses in recent days.
Over the past three days, Dogecoin has dropped by more than 12%, while Shiba Inu and Bonk have seen declines of 15% and 18% respectively. The broader meme coin index has also plummeted by nearly 20% during this period, underperforming the overall crypto market.
Analysts attribute this slump to the overall bearish sentiment in the crypto space, with Bitcoin and Ethereum recording double-digit losses. The uncertainty in the macroeconomic environment and concerns over potential interest rate hikes have weighed heavily on the speculative meme coin sector.
In the midst of this market downturn, popular singer Jason Derulo launched his own meme coin, $JASON, earlier this week. The coin had a strong debut, gaining over 30% on its first day of trading, but ultimately ended up as a rug.
Similarly, rapper 50 Cent’s Twitter account was hacked, and the hacker orchestrated a quick pump and dump scheme that resulted in over an 8000% increase in value before crashing.
One meme coin that has been hit particularly hard in this recent downturn is Bonk (BONK), a Solana-based project that has gained significant traction in recent months. In the past three days, BONK has seen an 18% decline.
The struggles within the Solana ecosystem have also contributed to the decline in BONK’s price. As a Solana-based project, BONK’s performance is closely tied to the health of the Solana blockchain. Recent technical issues and outages on the Solana network have raised concerns about the long-term viability of the blockchain, resulting in selling pressure on BONK.
Dogecoin and Dogwifhat (WIF), which were previously leading the meme coin market, have also faced volatility and slower growth recently. Dogecoin has seen a 12% decline in the past three days, while Dogwifhat has plunged over 35% in the last 30 days despite a 950% year-to-date gain.
Jason Derulo’s launch of the $JASON meme coin has faced backlash, as the price plummeted by over 72% within minutes of its launch. Derulo blamed the incident on an individual named Sahil Arora, but skepticism remains about his involvement and potential responsibility in the token’s collapse.
Despite initial criticism, the $JASON token has surged more than 150% in the past six hours, making it one of the top gainers in a bearish market.
On June 22, rapper 50 Cent’s Twitter account was compromised by hackers who promoted a token called GUNIT. The token saw a massive price spike of over 8000% before crashing as investors realized it was a pump and dump scheme orchestrated by the hackers.
The involvement of high-profile figures like Jason Derulo and 50 Cent in the meme coin market suggests that there is still investor interest in these speculative crypto markets, even during a broader market downturn.
In a recent incident, the founder of the Rizz meme coin witnessed a 90% drop in value during a live presentation on X.com. This sudden decline raises concerns about the project’s long-term viability and the founder’s ability to effectively manage and market the meme coin.
Despite the recent market dip, Rizz has seen a 360% rise in the past 24 hours, with locked liquidity of 210K and a market cap of $2.8M.
The past week has seen significant selling pressure on meme coins, impacting the entire market. This has even caused Bitcoin to drop below $61K, indicating a shift in market interest and strong investor sentiment.
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