Despite previous hype and community support, these coins may face further drops in market cap and prices due to speculation and lack of stability.
The decrease in value of three meme coins is a complex problem that goes beyond issues within specific projects. These tokens have reached a critical point as market forces are finally catching up after a significant delay. In order to offset their lack of actual worth and technical support, meme coins heavily rely on viral marketing and social media activity. However, these methods only provide temporary results and require constant hype to maintain them.
It may seem unlikely for a major investor to sell an asset that has produced a 1,000% return. However, by monitoring large transactions, we can observe numerous instances of meme coins being sold. In the first three months of 2024, there was a spike in purchases of meme coins, causing prices to increase. Speculation often leads to overbought conditions and profit-taking, resulting in a drop in prices. Even jokes on social media are unable to prevent this downward trend.
One example is Bonk (BONK-USD), which gained popularity through internet memes and satire on the Solana (SOL-USD) blockchain. During a market downturn in 2022, Bonk offered hope for a bull market and attracted investors hoping for a repeat rally. However, its peak price of $0.000024 was followed by a steady decline to $0.000001 in late 2023 as attention shifted to more established coins. Despite the introduction of BonkSwap and BonkDex, the token remains primarily for entertainment purposes. Recently, there has been a decrease in Solana-based meme tokens, including Bonk, which has dropped by 3.5%. The token’s price has dropped below its 100-day EMA, making it a meme coin that is recommended to sell. Despite efforts from whales and boosters, investor interest in Bonk is low.
Another example is Dogwifhat (WIF-USD), which has also faced selling pressure recently. Its price dropped to around $2, but social media promotions and community activity helped stabilize it. However, the token’s investors have shown a lack of professionalism as they did not respond to important news. When the trend shifts, a sharp drop is expected. Despite its transformation from an unknown token to the 35th-ranked meme coin in terms of market capitalization, Dogwifhat may return to being an unwanted coin. It has already experienced a drop from $4.85 to $3.3, and if it does not meet expectations for rapid growth, investors will likely sell it, resulting in a decrease in market cap and a downward price trend.
Lastly, Dogecoin (DOGE-USD) has recently experienced a series of ups and downs. Despite some recovery, the cryptocurrency has not shown a consistent upward trend. The recent decrease in Dogecoin’s value has led to a drop in market activity and investor interest. Whales selling their holdings and major movements of DOGE to exchanges indicate a lack of confidence in the digital asset. While it remains in the top 10 in terms of market capitalization, Dogecoin’s position has been affected. There are varying opinions among analysts about the community’s impact on the token’s stability. However, the highly volatile nature of DOGE may cause it to return to lower values without the hype. The peak of 2024 appears to have passed, and the future performance of this meme coin is uncertain.
In summary, the decline of these meme coins is caused by multiple factors, including the lack of actual value, dependence on viral marketing, and the impact of market forces. Bonk, Dogwifhat, and Dogecoin have all experienced selling pressure and are considered meme coins that should be sold due to their decreasing prices and low investor interest. Despite previous hype and community support, these tokens may see further drops in market cap and prices due to speculation and instability.
