Bitcoin, altcoins, and memecoins are currently in a downward trend, which has dampened the optimistic outlook of the past two weeks. A correction occurred in late July, erasing the gains in the memecoin market despite positive expectations for the second quarter of 2024. As cryptocurrencies come under pressure, users are selling their holdings en masse, with large volumes moving to exchanges.

Memecoins such as Dogecoin (DOGE) and Shiba Inu (SHIB) are leading the market and also influencing the sentiments of related assets. At the time of writing, the total market cap of the crypto market stands at $2.13 trillion, which represents a 4% drop in the past 24 hours. The market cap of memecoins has dropped by 14% to $44.3 billion. This significant drop in memecoins compared to other assets has raised mixed opinions about the future of this asset class.

Dogecoin Suffers Monthly Losses

Memecoins are known for their volatility and rapid price movements, which explains the recent drop within the broader crypto market. Dogecoin is currently trading at $0.1081, which is down 9% today and a weekly drop of 13.5%. This price drop has led to massive selling within the community.

Dogecoin’s downtrend has seen it lose over 33% of its value over the past month, erasing a significant portion of the gains from the last bull cycle. DOGE’s market cap stands at $15.6 billion, while its daily trading volume stands at $1.1 billion.

Dogecoin holders speculate on future trends and hope for a turnaround due to macroeconomic developments.

General decline of memecoins

The negative sentiments are visible across multiple sectors within the crypto space. The price of Shiba Inu is down 8.3%, marking a weekly decline of over 13%. Similarly, PEPE, Dogewifhat, and BONK are down 7.1%, 3.5%, and 1.8% respectively, contributing to a broader downtrend in crypto assets. Still, a potential rate cut by the Federal Reserve could lead to renewed inflows of funds into risky assets.


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