NAIROBI (Coinchapter.com) – The memecoin market is crashing hard. In the last 24 hours, Dogecoin (DOGE), Shiba Inu (SHIB), and other joke-inspired cryptos have taken a nosedive. Economic jitters and investors cashing out those crazy gains seem to be the culprits. Even Elon Musk’s “Doge to the Moon” mantra might not save the day this time.
According to Coinmarkertcap data, memecoin market performance metrics exhibit a notable downturn. Dogecoin (DOGE) has dropped by 11.13% over the past 24 hours. Shiba Inu (SHIB) also experienced a similar 24-hour decline at 11.61%, compounding a 7-day decrease of 12.02%. Pepe (PEPE) took the steepest dive in the 24-hour frame, with a 14.20% drop, which contrasts with its 15.67% gain over the past week.
Memecoin Top losers. Source: CoinMarkertCap
In terms of market capitalization, Dogecoin still maintains a substantial presence with over $23 billion, while Shiba Inu and Pepe have market caps of approximately $17.5 billion and $3.8 billion, respectively. Trading volumes within the last 24 hours stand at $5 billion for Dogecoin, $2.4 billion for Shiba Inu, and $2.5 billion for Pepe. The sharp declines in the 24-hour percentage changes reflect a swift shift in investor sentiment and a broader market pullback.
What’s Behind the Memecoin Market Crash?
The memecoin market’s recent downturn can be directly linked to the broader economic indicators, specifically the latest readings of the U.S. Core Producer Price Index (PPI) and the overall market sentiment. February’s Core PPI month-over-month increase came in at 0.3%, a deceleration from the previous 0.5%, albeit slightly higher than the anticipated 0.2%. Year-over-year, the Core PPI held steady at 2.0%, matching previous figures and marginally exceeding the forecast of 1.9%.
Source. X
The crypto market’s reaction, with a significant 8.14% drop in global market cap to $2.54 trillion in just one day, reflects a broader shift towards risk aversion among investors. This shift has had a pronounced impact on speculative assets like memecoins, which are highly sensitive to changes in market sentiment and economic indicators. The connection between these economic reports and the crypto market’s downturn underscores the influence of macroeconomic trends on investor confidence and asset valuations in the cryptocurrency space.
Where’s Papa Elon When You Need Him?
While Elon Musk has been fueling memecoin rallies with his comments, he could not even save the day this time. In fact, as Musk recently stated, Tesla is working to enable DOGE payments at some point, and with the token already down, his words may have fallen on less receptive ears. It’s a reminder that tweets can be fleeting, but economic data has a more lasting impact on market sentiment.
‘Tesla will enable $DOGE payments at some point,’ adding ‘Dogecoin to the moon.’
Elon Musk stated
So, is the memecoin era over for good? Doubtful. They’re like internet cockroaches – hard to squash entirely. But this memecoin market crash is a harsh reality check. Whether riding the hype train or just watching the sideshow, it pays to remember the golden rule of investing, especially in the crypto world: nothing goes up forever, not even a meme. One thing’s for sure: the crypto market is as volatile as ever, and fortunes can flip faster than you can say “to the moon.”
