With the Bitcoin price drops from $70,000 level to below $64,000, Even coins naturally suffered as a direct result. Meanwhile, meme coins large and small have seen their prices drop significantly, raising concerns that meme coin summer is ending. However, given previous crashes, there may still be hope, especially as crypto analysts continue to predict a bigger rise for these parts.
Meme Coins Are Struggling to Hold Up
A quick look at the list of meme coins on the CoinGecko website watch that these coins have continued to bleed significantly over the past 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 past week the Bitcoin price fell around 7%, with Ethereum posting similar losses of 5.4%. However, when compared to the performance of even the largest coins, such as Dogecoin and Shiba Inu, we see how these coins have performed even more poorly.
On the one hand, Dogecoin price was 11.6% during this period, which pushed its price below the $0.12 support level. Likewise, the Shiba Inu Price saw notable losses of 15.6%, also pushing it below an important support level of $0.000018. PEPE, one of the new favorites among crypto investors, saw the fewest losses for the top 5, at 7.1%.
In addition, the price of Dogwifhat, Solana’s main coin, has fallen 32.7% in this period to $1.6, with losses of 7.9% in the last day alone as of this writing. Behind him is FLOKIwhich recorded losses of 15.9% over a 7-day period.
Other notable mentions include BONK with a 17.9% decline and Book of Meme (BOME) down 14.2% during the same period. BRETT, the top core network coin, is down 10.6% and TURBO, arguably the most popular coin created by AI, is down 15.8%.
Is there still hope from here?
The tendency of meme coins to crash further 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 when the market falls, they are more likely to bounce back stronger than any other coin due to their high volatility. The latter constitutes a powerful attraction for investors looking for high short-term returns.
To put this into perspective, when the price of Bitcoin increased by around 20% in May, companies like BONK have increased by more than 100% from their lowest levels. PEPE has been exceptional during this period, increasing by more than 200% over the same period.
If crypto analysts and the bull run is far from over, then investors in these meme coins could be at risk once Bitcoin begins its climb towards $100,000. If Bitcoin goes to $100,000which represents an increase of almost 100% from here, then meme coins are expected to rally strongly, with nothing less than a 100% increase expected for these volatile cryptocurrencies.
Featured image created with Dall.E, chart from Tradingview.com
