Meme coins marked some of the most prominent growth during the rise of the crypto market in 2021. ROI on investments in digital assets like Dogecoin and Shiba Inu was off the charts when they went from obscurity to being some of the most popular cryptocurrencies. On the flip side of this, meme coins have also been some of the hardest hit in the recent crash.
Meme Coins Lose Billions Off Market Cap
At the height of the meme coin craze, Dogecoin, and Shiba Inu, alongside others, boasted hefty valuations for coins with no utility. Doge and SHIB in particular crossed the $30 billion range, qualifying them for a spot in the top 10 cryptocurrencies by market cap. At a point, these two altcoins alone commanded almost $100 billion in valuation. But not anymore.
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In light of the recent market crash, meme coins that have been on a downtrend have taken a serious beating down. Both of these coins have lost over 50% of their valuation from their all-time high. Others have not fared very well in the market. The total meme coin market cap that has surpassed $100 billion last year has now crumbled to $36 billion.
Furthermore, the total meme coin economy now makes up only about 3% of the broader crypto economy. This is a small percentage given that this number is the total valuation of all meme coins in the market, not a single one.
Dogecoin, Shiba Inu Crash Land
Dogecoin and rival Shiba Inu have had the worst go of it this time around. Both meme coins had managed to cross the $30 billion valuations, with Dogecoin reaching the $40 billion point. However, with the recent crash, both these digital assets have had some of the highest percentages shaved off their all-time high values.
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Where Bitcoin and Ethereum have had about 50% shaved off their all-time high values, Dogecoin and Shiba Inu have had over 70% removed since they hit their peak. Shiba Inu which has garnered a cult-like following has dropped 75% since it hit its all-time high above $0.00008 last year. OG meme coin Dogecoin has seen a higher downtrend with 80% of its all-time high value already lost.
DOGE trading at $0.14 | Source: DOGEUSD on TradingView.com
These two cryptocurrencies still remain the most dominant meme coin though. Of the total $36 billion meme economy valuation, the combined value of Dogecoin and Shiba Inu makes up 82.94% with a combined valuation of $29.5 billion.
Digital assets across the meme coin space have also been badly hit. Cons like BabyDoge and Floki Inu have all suffered massive dips. As of this writing, BabyDoge has already lost over 32.5% in a single week.
Featured image from Binance Academy, chart from TradingView.com
Source: https://bitcoinist.com/meme-coins-bear-the-brunt-of-market-crash/