Meme coins, known for their volatility, typically mirror Bitcoin’s ($BTC) performance, rising during market highs and plummeting during lows. This pattern held true on Tuesday when these digital tokens experienced significant drops following a sudden Bitcoin price plunge.
Bitcoin’s value sharply declined from over $68,000 to nearly $62,000 between late Monday and early Tuesday. Despite this setback, Bitcoin has managed a partial recovery, currently valued at around $65,200, marking a 1% decrease for the day.
State of the meme coin market
Despite the broader market instability, the meme coin sector showed mixed results. According to CoinGecko, the total market capitalisation of all meme coins stands at $48 billion, reflecting a 6% decrease in the last 24 hours.
Larger-cap meme coins such as Dogecoin ($DOGE) and Shiba Inu ($SHIB) are actually showing signs of recovery, with $DOGE up 3% in the previous 24-hours and $SHIB maintaining the same price over the past day. However, both are down 22% over the past seven days.
But, it appears that the newer generation of meme coins, especially those on the Solana ($SOL) blockchain, has suffered more significantly in the recent downturn, indicating a potentially unstable outlook for these assets.
Challenges for Solana Meme Coins
Among these, Dogwifhat ($WIF) saw a notable decline, dropping from $2.77 to $2.15 before making a partial recovery to $2.22. This coin is currently down 5% within the past day and 7% over the previous week.
$BONK, once the leading Solana meme coin by market cap, has faced greater challenges, with a 25% reduction in value over the past week. Although it has regained some ground today, it remains significantly down from its peak.
Book of Meme resists sell pressure
Another Solana meme coin facing uncertainty is the Book of Meme ($BOME), which recently sparked interest due to a resurgence in crypto presales. $BOME has endured significant price fluctuations, eventually stabilising at $0.011. This follows a stark decline from its all-time high over the weekend of $0.022.
Contributing to the instability, Binance announced an investigation into potential insider trading associated with the coin, further impacting its market performance and investor confidence.
However, the meme coin is resisting this sell pressure, and is up 5% in the past day. $BOME has also maintained an impressive 1214% increase compared to its price a week ago.
