Celebrity-backed meme tokens on the Solana blockchain have suffered a dramatic collapse, losing over 90% of their peak value within a month.
A frenzy of speculation propelled these tokens, endorsed by a star-studded cast including Andrew Tate, Soulja Boy, and Doja Cat, to dizzying heights. However, the bubble burst with astonishing speed, wiping out billions of dollars in investor wealth.
The rapid ascent and even faster decline of these tokens highlight the extreme volatility of the memecoin market and the risks associated with investing in assets primarily driven by hype and celebrity endorsement.
The average drop from their all-time highs is a staggering 94%. More than 70% of the top-performing tokens have seen declines, and over 99% of them have experienced a sharp decline.
Currently, the value of 22 of the 30 tokens is less than $1 million. For example, the token associated with artist Waka Flocka is today worth only $400,000. It has lost 99.7% of its peak value.
While the allure of quick riches attracted a legion of investors, the lack of intrinsic value in many of these tokens proved to be their Achilles’ heel. Coupled with concerns over market manipulation and potential scams, the crash has cast a long shadow over the celebrity-backed token phenomenon
These cryptocurrency’ market capitalization has suffered significantly. A diverse range of celebrities from the worlds of music, sports, and entertainment continues to promote these tokens, sometimes even launching their own. Although their value has drastically decreased. It appears that the interest of the endorsers is diminishing since just 40% of the celebrities participating have tweeted about these tokens in the last week.
Today, Solana (SOL) is priced at $168.96 with a 24-hour trading volume of $5 billion. Although it has dropped 5.12% in the last 24 hours, SOL has gained 6.20% over the past week. Its market cap is $78.5 billion with a circulating supply of 460 million SOL.
It is unclear if celebrity-backed cryptocurrencies will be sustainable in the long run and how they will affect the market as a whole given these assets’ sharp drop.
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