The memecoin sector’s market capitalization has decreased to levels not seen since July, as meme-based tokens face challenges in recovering from significant losses sustained during the sharp decline of the crypto market on Friday.
Data from CoinMarketCap indicated that on Saturday, the memecoin sector hit a low of $44 billion, representing a nearly 40% drop from $72 billion the day prior. By Sunday, the memecoin market had made a slight recovery to $53 billion, a level reminiscent of July before a surge in Solana-based memecoins sparked a late-summer rally.
In the past four months, the memecoin market cap had consistently remained above $60 billion, as meme-based tokens attracted sturdy retail interest, largely due to Solana and BNB Chain. However, this recent decline signifies a shift in momentum.
At the moment, the memecoin sector’s market cap is around $57 billion, still considerably lower than its prior performances.
Top memecoins find it challenging to recover from Friday’s market turmoil
As per CoinMarketCap, the top 10 memecoins collectively represent about $47 billion, accounting for over 82% of the sector’s total market capitalization. At present, all of these tokens are trading in the negative across both 24-hour and seven-day charts.
Major meme tokens such as Dogecoin (DOGE), Shiba Inu (SHIB), and Pepe (PEPE) experienced weekly losses between 13% and 22%. Other prominent memecoins like Bonk (BONK) and Floki (FLOKI) have seen drops exceeding 20% in the past week.
US President Donald Trump’s official memecoin token has also suffered from the crash, displaying a 20% decline in the weekly charts.
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Other sectors quickly regain stability after the market downturn
While memecoins continue to recover from the aftereffects of the market crash, various other sectors have exhibited signs of quicker stabilization and rebound.
The day following the crash, non-fungible tokens (NFTs) began to recover. During the market sell-off, the overall value of the NFT sector dropped by 20%, leading to approximately $1.2 billion in value being lost. However, this niche quickly regained 10% of its value the day after the crash.
Crypto exchange-traded funds (ETFs) also attracted substantial fresh inflows shortly after experiencing a wave of outflows due to the recent market collapse. On Tuesday, spot Bitcoin ETFs recorded $102 million in net inflows, whereas Ether ETFs noted $236 million in net inflows.
More established cryptocurrencies demonstrated swift recovery as well. Bitcoin (BTC), which had fallen to $102,000, is now trading above $111,000, according to CoinGecko. Ether (ETH), which dipped below $3,700, has rebounded to levels topping $4,000.
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