Top 5 meme coins: Dogecoin, Shiba Inu, Pepe, Dogwifhat and Bonk extend losses
Dogecoin, Shiba Inu, Pepe, Dogwifhat, and Bonk extend losses following Bitcoin's drop to around $58,000.
Meme coins have observed a decline in on-chain activity.
Meme coin market capitalization shrinks to $40 billion on Monday.
Meme coins erased 6% of their market capitalization in the last 24 hours, down to $40 billion per CoinGecko data. The shrinking market capitalization reflects the “fear” among crypto traders.
Alternative.me’s Crypto fear and greed index reads 25 on Monday, signaling “extreme fear” among traders. Two market movers are likely driving the changing sentiment, alongside macro factors this week.
Meme coins extend losses on Monday
The top five meme coins ranked by market capitalization include Dogecoin (DOGE), Shiba Inu (SHIB), Pepe (PEPE), Dogwifhat (WIF) and Bonk (BONK). These five tokens erased between 6% and 9% of their value in the last 24 hours, per CoinGecko data.
Meme coins are the leading narrative in the ongoing market cycle, which has been termed as the “meme coin supercycle. The sector outperformed others consecutively in the first two quarters of 2024.
Meme coin launchpads like Pump.fun and Moonshot have recorded a large number of launches as the asset category gains popularity.
Data from Dune Analytics shows only 0.12% of the meme coin launches on Pump.fun made it past $60,000 in market capitalization (in the last 24 hours) and a listing to the decentralized exchange Raydium. The alarming numbers show the state of meme coins and investments in the category.
1.4% of Pump.fun’s 1.58 million meme coins that have been listed on the DEX since its inception were listed on a DEX. Nearly 99% of the projects failed or ended up in a “pump and dump” scheme. The chart below shows the number of projects launched and the successful ones (that were listed on an exchange.)
Declining on-chain activity signals traders’ loss of interest
Santiment data shows that active addresses in the 24 hour timeframe declined in top meme coins. A drop in on-chain activity is a sign of a loss of interest from market participants. This can be attributed to last week’s crypto crash, the drop in Bitcoin’s price under $60,000, and an overall decline in capital inflow to the meme coin category.
At the time of writing, the sentiment among crypto traders is that of “extreme fear”, and Bitcoin ranges below $60,000. On Monday, BTC trades at $58,883, DOGE trades at $0.1038, SHIB at $0.00001376, PEPE at $0.00000817, WIF at $1.730 and BONK at $0.00001967.
