Memecoins bleed out over 51% in 2 months – Is there any hope for the sector?
The post Memecoins bleed out over 51% in 2 months – Is there any hope for the sector? appeared on BitcoinEthereumNews.com.
Memecoins plunged over 50%, undermined by fading hype and low retail interest. Negative MVRV ratios showed underwater positions, pressuring DOGE holders to capitulate. The cryptocurrency market has entered a sharp correction, with memecoins experiencing some of the steepest losses. According to Delphi Digital’s latest market breakdown, the memecoin sector has suffered an average decline of 51.74% between 31st of December and 24th of February. This is significantly worse than Bitcoin’s [BTC] performance, which has remained relatively stable compared to riskier assets. Source: X As speculative interest fades, assets like Dogecoin [DOGE], Shiba Inu [SHIB], and PEPE have posted staggering losses, raising concerns about the sustainability of the memecoin market. Memecoins plunge over 50% in two months The worst-hit memecoins include PEPE, DOGE, Melania Meme [MELANIA], and SHIB. Over three weeks, memecoin capitalization dropped from $116 billion to $67.7 billion. PEPE lost about 80% from its peak. Whale activity triggered a huge sell-off, with 1.1 trillion PEPE tokens liquidated. This sell-off has wiped billions from the memecoin market, which previously thrived on social media hype and speculative trading. Data from CoinGecko showed that the overall memecoin market cap stood at $64.1 billion at press time, with a 1.1% drop in the last 24 hours, signaling continued bearish pressure. Source: CoinGecko A separate report from Glassnode indicated that the broader cryptocurrency market had entered a contraction phase after Bitcoin failed to break past $105,000 in January 2025. Memecoins, which surged in late 2024 with massive 90%+ monthly gains, have since crashed, now posting an average loss of 37.4% in February 2025 alone. Market sentiment has worsened, as shown by futures market data. Memecoin perpetual futures open interest has fallen significantly by 52.1%. Additionally, Funding Rates for memecoins have shifted into negative territory. This signals a strong bearish sentiment among investors. An on-chain…
Filed under: News - @ February 27, 2025 9:19 pm