Top Memecoins in the crypto industry are facing a significant drop in price following the general market meltdown in the crypto space at the moment.
The general downturn in the crypto market succeeded in reversing the meme coin surge era where memecoins were performing a lot better than other altcoins.
The general market decline witnessed Bitcoin dropping well below $65,000 and Ethereum dropping to $3400.
The memecoin sector was seriously impacted by the bleedout with top meme coins all recording losses. Dogecoin (DOGE) is down 8% daily, while Shiba Inu (SHIB), dogwifhat (WIF), Pepe (PEPE), Floki Inu (FLOKI), and many more recorded severe losses respectively.
The celebrity-backed meme coins category where not left out too despite the rave created by their patron celebrities.
A good example of the decline in this category is the performance of $Mother and $Daddy meme coins who before the meltdown were among the top performers in the celebrity meme coin category.
$Mother a memecoin inspired and backed by Australian model and rapper Iggy Azalea dropped by over 40% with its market capitalization dropping below $80 million.
$Daddy a token promoted by online influencer Andrew Tate to counter the influence of the $Mother token has witnessed a 60% drop in value from its price peak of $0.35. The token currently trades for $0.14 representing a 22% daily decline.
Before the general market meltdown, both memecoins were doing well and pulling weight on their right.
$Mother was launched towards the end of last month and performed brilliantly in its early days. The memecoin reached an all-time high of 0.23 on June 7 with its market capitalization pumping to $150 million.
The reverse is the case today with $Mother now trading for $0.11773 and its market capitalization dropping below $80 million.
$Daddy token on the other hand dropped from its all-time high of $0.35 to $0.14.
The massive drops in value by the memecoins once again serve as a warning of the extreme volatility of meme coins and why they are very risky assets to invest in. Investors and traders are advised to conduct in-depth research and invest only an amount they can afford to lose.
What to Know
- Vitalik Buterin, Ethereum co-founder and top voice in the crypto industry voiced out his concerns about the recent frenzy of celebrity memecoins calling them a net negative for the industry.
- He explained that such crypto projects can only be encouraged if they offer additional value to the society besides making money for its creators and early backers.
- Memecoins are a type of cryptocurrency that is often inspired by internet memes, characters, or trends. They are typically supported by an enthusiastic online community or top celebrities.