The cryptocurrency market recently experienced a decrease, primarily impacting memecoins. This decline was caused by reports from Matrixport, suggesting a likely rejection of Bitcoin ETF applications by the U.S. Securities and Exchange Commission (SEC).
The news liquidations led to a loss of $540 million in the market. This four-hour period saw major cryptocurrencies such as Bitcoin and Ethereum suffer a decline of nearly 10%.
Memecoin Market Faces Steep Decline
The effect on the meme coin sector stood in this financial turmoil. Meme-based digital currencies experienced a decline exceeding 10% in value, overshadowing the average market decrease.
Bonk, a recent addition to the meme coin and rapidly gaining popularity, saw its value drop by 16% today. This drop contrasts its performance, which reached a high just three weeks ago and is now 66% below that top.
Dogecoin faced a fall, dropping from $0.090 to $0.0819 in a quarter of an hour. However, there was a slight recovery afterward. Similarly, Shiba Inu lost over 10% of its value today. However, its rally last December decreased its overall 30-day performance, showing an 8% increase.
Overall, the crypto market cap decreased by 4.9% today. In comparison, the meme coinmarket cap experienced a decline of nearly 11.5%, more than double the general market’s loss. This highlights the heightened volatility and speculative nature of the meme coin sector.
As the crypto community braces for more updates regarding the Bitcoin ETFs’ approval, the impact on meme coins remains a main point of interest.
These developments underscore the cryptocurrency market’s unpredictable and often volatile nature, particularly within the meme coin niche. Investors and enthusiasts closely watch these trends, anticipating the next moves in this ever-evolving digital asset.
Also Read: BONK Falls 13% As Memecoin Frenzy Ends & Traders Take ProfitÂ
