The leading meme coins, including Dogecoin (DOGE), Shiba Inu (SHIB), and PepeCoin (PEPE), have experienced a downturn in the past week. This decline coincides with the emergence of new meme coins and losses in Bitcoin (BTC) and Ethereum (ETH), which are highly correlated with the broader market.
Meme Coins Under Pressure with Arrival of New Competitors
PEPE has suffered the most significant losses among the top three meme coins, with a 14.9% decrease since last week and a 5.5% drop in the last 24 hours. Despite this, PEPE has seen a 52.5% increase on a 30-day scale, following substantial gains during June’s meme coin rally.
New Meme Coins Grabbing Market Attention
The launch of new projects like PEPE 2.0 and Shib 2.0 has drawn the market’s attention. PEPE 2.0’s market capitalization exceeded $50 million within days of its launch. Meanwhile, Wall Street Memes, a new meme coin project, has raised over $13 million in less than a week.
The introduction of these new competitors has likely diverted traders’ attention from PEPE, as evidenced by the declining trading volumes for the meme coins.
Impact of BTC and ETH Price Action on Meme Coins
The bearish price action of BTC and ETH last week, amid rate hike expectations by the U.S. Federal Reserve, likely contributed to the selling pressure in meme coins. BTC briefly lost support at $30,000, while ETH slipped below $1,900, indicating a lack of positive momentum from June.
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