While the crypto market is currently going through a muted period, memecoins – known for their drastic price movements – are losing strength and are lacking substantial price upsticks since the past few days. The overall memecoin market cap has declined over 10% in the past 30 days while it also losing 4.86% in the past 24 hours.
As per Coinmarketcap data, leading memecoins – including Dogecoin (DOGE), Shiba Inu (SHIB) and PEPE have declined 4.78%, 3.52% and 3.95% respectively. Meanwhile BONK, SPX and WIF have dropped nearly 12% in the past 24 hours.
Other popular memecoins like FARTCOIN, TRUMP, FLOKI, BRETT, PENGU, and POPCAT have also lacked any significant traction in the past 7 days.
One of the primary reason behind wearying in memecoin market is liquidity outflow which has been increased to record levels since Trump launched the tariff war few weeks back. This has not only impacted liquidity in memecoins but top crypto assets like Bitcoin and Ethereum are also seeing huge outflows.
It has been historically found that Memecoins show notable upsticks when new liquidity is entering the market. For example, when Bitcoin was on its way to break above the $100,000 price mark for the first time in January, memecoins were printing huge green candles with daily double digit gains. Now as the crypto market is falling short in capital inflows, memecoins are reacting to it as they should be.
If a potential reversal in memecoins is to take place, it will first go through leading crypto assets and once they spike, memecoins will be the direct beneficiary of it.
Also read: Pi Coin Price Crashes to $0.60, Down 19% in Just 24 Hours
