The memecoin market has taken a significant hit. Following the recent sharp decline across the crypto market, meme-based tokens such as Dogecoin (DOGE) and Shiba Inu (SHIB) lost nearly 40% of their value in a single day. Although a slight recovery followed, major players remain deep in the red.

Memecoin market cap falls to $44 billion

According to data from CoinMarketCap, the total market capitalisation of memecoins dropped to $44 billion on Saturday, a sharp fall from $72 billion the previous day. On Sunday, the sector saw a modest recovery to $53 billion – a level last seen in July, just before Solana-based memecoins ignited a strong late-summer rally.

Over the past four months, the total value of the memecoin market consistently remained above $60 billion, supported by strong interest on Solana and BNB Chain. However, the sudden drop appears to signal a clear shift in momentum. At the time of writing, the sector sits around $57 billion – still significantly below recent highs.

Major memecoins underperform

The top 10 memecoins represent more than 82% of the entire market, with a combined value of $47 billion. Despite their size, all of them are trading in the red on both a daily and weekly basis. The biggest memecoins show clear declines:

• Dogecoin (DOGE): -13% to -20% over the past week
• Shiba Inu (SHIB): similar decline
• Pepe (PEPE): up to -22%
• Bonk (BONK): more than -20%
• Floki (FLOKI): also over -20%

Even the official memecoin of former President Donald Trump (TRUMP) fell by around 20% week-on-week.

Other crypto sectors recover more quickly

What stands out is that while memecoins are still struggling to bounce back, other parts of the crypto market are already showing signs of stabilisation.

NFT market: During the crash, over $1.2 billion in value evaporated (-20%), but the sector recovered by 10% within a single day.
Crypto ETFs: After previous outflows, spot Bitcoin ETFs attracted $102 million in net inflows on Tuesday. Ether ETFs performed even better with $236 million in net inflows.
Major cryptocurrencies: Bitcoin (BTC) briefly dropped to $102,000, but is now trading above $111,000. Ethereum (ETH) fell below $3,700, but has since recovered to over $4,000.

What does this mean for investors?

Recent developments show that memecoins are more sensitive to market swings than larger cryptocurrencies. While Bitcoin and Ethereum recover relatively quickly, memecoins continue to lag behind. This may indicate a decline in risk appetite among investors. However, the sector remains popular with retail traders, and a new hype – for example on Solana – could spark another rally in the future.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always conduct your own research before making investment decisions.