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Crypto: The End of the Memecoin Euphoria, Make Way for Solid Projects

Tue 18 Jun 2024 ▪ 3 min of reading ▪ by Fenelon L.
Getting informed Altcoins

The crypto market is undergoing a significant correction, with a particularly pronounced drop for memecoins. As investors turn to more solid assets, are we witnessing a paradigm shift in the industry?

Les investisseurs se tournent vers les crypto solides

The Debacle of Memecoins 

The crypto market recorded a 3% drop in the last 12 hours, with total capitalization reaching its monthly low of 2.48 trillion dollars. However, it is the memecoins that suffered the most, with double-digit losses for most of them.

Kyle Chassé, a Bitcoin pioneer, highlighted on X the speed at which investors are turning away from these speculative assets. He calls this movement a “flight to quality,” where traders now favor crypto assets with a clear function or purpose.

According to CoinGecko, the market capitalization of memecoins has dropped by 14%, settling at 48.8 billion dollars. The MAGA TRUMP coin was the hardest hit with a 34% drop, while others like dogwifhat, Brett, and Book of Meme also recorded losses of over 14%.

Even industry leaders such as Dogecoin, Shiba Inu, and Pepe were not spared. Only the DOG-GO-TO-THE-MON token, based on Runes, managed to stay in the green over the past seven days.

A Generalized Correction

While memecoins are the most affected, the decline affects the entire altcoin market. Solana lost 7%, falling to $132, while Cardano dropped 7.8% to settle at $0.37.

Other assets like Avalanche (AVAX), Uniswap (UNI), Internet Computer (ICP), and Near Protocol (NEAR) also suffered. Bitcoin, meanwhile, found support around $65,000 but remains stuck in a lateral channel for three and a half months.

This generalized correction calls into question the idea of a “flight to quality” at this stage. Nonetheless, the more pronounced drop in memecoins could be a sign of a changing mindset among investors.

After a period of speculative euphoria, the market seems to be maturing and seeking projects that offer real added value. Only time will tell if this trend holds or if the appetite for risk will take over again.

The debacle of memecoins may mark a turning point for the crypto industry. As investors appear to favor more solid assets, it remains to be seen if this “flight to quality” will be confirmed over time.

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Fenelon L. avatar
Fenelon L.

Passionné par le Bitcoin, j'aime explorer les méandres de la blockchain et des cryptos et je partage mes découvertes avec la communauté. Mon rêve est de vivre dans un monde où la vie privée et la liberté financière sont garanties pour tous, et je crois fermement que Bitcoin est l'outil qui peut rendre cela possible.

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.