For better or for worse, memecoins have become a huge part of the cryptocurrency market. They seem to be the predominant means of entry into the world of crypto for retail investors.
However, the past two weeks have only been difficult for memecoin investors as many are down 50% or more from their recent all-time highs.
Shiba Inu (SHIB) Lost Half of Its Value
Shiba Inu (SHIB) is undoubtedly the market leader in the memecoin field for the past month or so, stealing all the glory from the former memecoin champ, Dogecoin (DOGE). While DOGE remains with a higher market cap than SHIB, it was the latter that stole the show at the end of the third quarter of this year.
In October, SHIB’s price skyrocketed by more than 1000% and reached an all-time high of around $0.00008616 (according to CoinGecko).
Unfortunately, the momentum has not been sustained as it seems to have been mainly driven by retail investors. This, combined with the fact that SHIB’s total supply is highly concentrated, led to what happened next.
Fast forward a few weeks later, and the price of SHIB is down almost 50%. There’s no real sign of the euphoria that we saw in October, and the interest in the cryptocurrency is fading quickly.
Other Memecoins follow suit
It appears that the fate of many other non-sensibly purposeful memecoins created from some sort of internet meme, commonly associated with Elon Musk, is similar.
Floki Inu (FLOKI) – the coin named after Musk’s dog – is down 51.7% since its all-time high reached just 14 days ago. Baby Doge (BABYDOGE) is down 46.6% since its peak. Dogelon Mars (ELON) is down 32% since its peak was reached on October 30.
The situation with other memecoins centered around the same theme is similar – all of them suffer considerable losses.
The thing about them, however, is you never know when they’ll start trending again. The SHIB pump came seemingly out of the blue, and it was propelled to an extend where SHIB had a larger trading volume compared to its own market cap.
It seems, however, that the gains faded as quickly as they came, leaving many people with bags of questionable investments.
There are plenty of lessons to be learned from this, though. Right off the bat, never go chasing a pump. If you missed it, you missed it and you better look for a new opportunity rather than grabbing knives.
When it comes to memecoins, they obviously can no longer be disregarded as potential investment choices, but it’s also important to conduct proper due diligence before throwing your cash at the “next SHIB.”
