Memecoins may face a similar decline as seen with ICOs and NFTs.
The performance of memecoins significantly declined in August, signaling a potential shift in market sentiment.
During the Blockchain Futuristic Conference in Toronto, Canada, a live discussion took place at the WonderFi main stage titled “Memecoins, Social Investing, and DeFi – How Retail Trading Will Continue Evolving.” Jelena Djuric, CEO of Noble and a panel speaker, expressed her skepticism about the longevity of these memecoins in the market.
Initially, these tokens garnered attention through social media hype and speculative trading, reminiscent of the Initial Coin Offering (ICO) boom and the Non-Fungible Token (NFT) surge. However, just as ICOs and NFTs eventually faced market corrections and waning interest, MEME is now experiencing similar patterns.
Like NFTs and ICOs, they are no longer expected to be unbothered in the market. Investors have become incurious to invest in MEME. NFTs experienced a significant boom in 2020, while ICOs surged in 2017. The ICO market saw a notable increase in 2017, with an estimated $4.9 billion raised. This was followed by a major spike in 2018, reaching $33.4 billion, before experiencing a sharp decline to $370 million.
Memecoins in August Shows Declining Trend
The memecoin frenzy that once captivated retail investors has shown signs of slowing down. In August, the performance of many memecoins saw a marked decline compared to their explosive beginnings.
Top memecoins fail to surge high amid the crypto market recovery. According to the CMC 24h data, at the time of writing top MEME are witnessing a price decline. PEPE is showing a 0.84% increase while the other coins are down 0.20%.
Memecoins Price Treemap Source: Sandbase
Experts warn that without sustained investor interest, it might follow the same path as their predecessors, potentially leaving late investors with significant losses. This trend underlines the importance of cautious investment strategies in speculative assets.
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