With the Bitcoin price drop from the $70,000 level to below $64,000, meme coins have understandably suffered as a direct result of this. During this time, meme coins, both large and small, have seen their prices drop significantly, raising concerns about whether the meme coin summer is over. However, going by previous crashes, there may still be hope, especially as crypto analysts continue to predict a larger move up for these coins.
Meme Coins Struggle To Hold Up
A cursory look at the meme coins list on the CoinGecko website shows that these coins have continued to bleed drastically over the last week. Their level of decline compared to the likes of Bitcoin and Ethereum puts into perspective just how volatile these cryptocurrencies can be.
For clarity, over the last week, the price of Bitcoin has fallen around 7%, with Ethereum posting similar losses of 5.4%. However, when compared to the performances of even the largest meme coins, such as Dogecoin and Shiba Inu, we see how these coins have performed even more poorly.
For one, the Dogecoin price was 11.6% during this time, driving its price below the $0.12 support level. Likewise, the Shiba Inu price has seen notable losses of 15.6%, also pushing it below an important support level of $0.000018. PEPE, one of the new favorites for crypto investor, has seen the least losses for the top 5 at 7.1%.
Additionally, the price of Dogwifhat, Solana’s foremost meme coin, has dropped 32.7% during this time to $1.6, with 7.9% losses in the last day alone at the time of this writing. Following behind it is FLOKI, which has seen 15.9% losses in the 7-day period.
Other notable mentions include BONK with a 17.9% decline and Book of Meme (BOME) dropping 14.2% in the same time period. BRETT, the leading meme coin on the Base network, is down 10.6% and TURBO, arguably the most popular meme coin created by AI, is down 15.8%.
Is There Still Hope From Here?
The tendency of meme coins to crash farther than the general market highlights their risk, but it is this same quality that attracts investors to them. Just as they are more likely to crash hard when the market falls, they are more likely to rally harder than any other coin due to their high volatility. The latter makes it a potent draw for investors looking for high yields in a short time.
To put this into perspective, when the Bitcoin price rallied around 20% in May, the likes of BONK rose by more than 100% from their crash lows. PEPE was exceptional during this time, rising by more than 200% in the same time period.
If crypto analysts are to be believed and the bull run is far from over, then investors in these meme coins could be in for a threat once Bitcoin begins its ascent to $100,000. If Bitcoin goes to $100,000, which is an almost 100% increase from here, then expectations are that meme coins will rally hard, with nothing less than a 100% increase expected for these volatile cryptocurrencies.
Featured image created with Dall.E, chart from Tradingview.com
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