Despite the pullback, PNUT’s price is still up more than 1,500% on a weekly basis.
Summarize
The memecoin market experienced a significant correction today (November 15), but its total market capitalization is still close to $120 billion.
While such tokens have been able to generate huge gains in the past, their speculative nature makes them quite risky for inexperienced traders.
Heading South
The past 24 hours have not been kind to the cryptocurrency market, with many major assets seeing significant losses. Bitcoin (BTC) fell below $88,000, Ethereum (ETH) dropped to around $3,000, and Solana (SOL) dropped 4%.
The situation was even worse in the meme coin space. Dogecoin (DOGE) plunged 8%, while its biggest competitor, Shiba Inu (SHIB), fell 9%.
Some assets that have surged in price over the past few days, such as Pepe (PEPE) and Peanut the Squirrel (PNUT), are now among the worst performers, with double-digit losses. Other tokens joining the club include Popcat (POPCAT), Neiro (NEIRO), dogwifhat (WIF), and others.
However, the situation is not all bleak as some meme coins are currently in the uptrend. For example, CAT (+10%), BRETT (+13%), SPX (+17%), DEGEN (+26%), etc.
Meanwhile, the total market capitalization of the memecoin market remains well above $100 billion. Earlier this week, that figure surpassed a record high of $120 billion.
Meme Coin Volatility
Meme coins have become a major trend in the cryptocurrency space, frequently making headlines due to their rapid price increases and widespread popularity driven by internet culture.
Many tokens, including DOGE, SHIB, BONK, and PEPE, have tripled or even quadrupled in the last year, resulting in significant profits (at least on paper) for those who joined the trend early.
However, memes are also prone to experiencing significant corrections, which can cause inexperienced or over-leveraged traders to suffer devastating losses. After all, many of these assets lack fundamental value in terms of utility or intrinsic value, and their prices are largely influenced by market speculation.
Nonetheless, people are advised to enter the ecosystem after doing proper due diligence and only invest the amount they are comfortable investing.
