 ▲ Meme coins in broad decline / ChatGPT-generated image © |
Amid global macroeconomic uncertainty and extremely subdued investor sentiment, a clear shift in capital flows is emerging within the cryptocurrency market. In contrast to major cryptocurrencies such as Bitcoin (BTC), which have staged slight rebounds to defend their price levels, the meme coin sector—widely regarded as a representative speculative asset class—has failed to escape a broad downturn.
As of 7:03 a.m. KST on the 20th, data from CoinMarketCap shows that the total market capitalization of meme coins stood at $31.21 billion, down 0.30% from 24 hours earlier. Daily trading volume also shrank by 2.25% to approximately $2.5 billion, reflecting waning market interest.
Dogecoin (DOGE), the leading meme coin by market capitalization, was trading at $0.09781, down 0.65% from the previous day and below the $0.10 level. Shiba Inu (SHIB) and Pepe (PEPE) also joined the downward trend, falling 1.77% and 0.12%, respectively. Notably, Memecore (M) plunged 5.69%, while other recently spotlighted meme coins—including Pudgy Penguins (PENGU, -3.66%), Dogwifhat (WIF, -2.29%), and Bonk (BONK, -1.20%)—faced clear downward pressure. Exceptionally, Official Trump (TRUMP) managed to edge up 0.90%, showing relative resilience.
The weakness in the meme coin market is largely attributed to prevailing “risk-off” sentiment across the broader financial markets. According to CoinMarketCap, the cryptocurrency Fear & Greed Index currently stands at 11, indicating “Extreme Fear.” As geopolitical risks and concerns over tightening liquidity intensify, investors are prioritizing the withdrawal of funds from meme coins—assets that lack intrinsic value or clear fundamentals and exhibit extreme volatility. A portion of this capital is rotating into Bitcoin and other cryptocurrencies perceived as relatively safer assets, signaling a “flight to quality” within the crypto ecosystem itself.
Experts anticipate a challenging path ahead for the meme coin market. Because meme coin prices are heavily driven by overall market liquidity and investor risk appetite, it is unlikely that significant capital inflows will return in the short term unless macroeconomic uncertainties ease. If concerns about shrinking global liquidity persist alongside corrections in equity markets, the possibility of further declines cannot be ruled out.
However, given the inherently high volatility (beta) of meme coins, there remains the potential for the sharpest rebounds once macroeconomic indicators stabilize or Bitcoin’s upward momentum gains traction, improving overall investor sentiment. For now, rather than attempting to prematurely predict a market bottom, investors should cautiously monitor overall liquidity trends and the recovery of market sentiment.
Disclaimer: This article is provided for investment reference purposes only, and no responsibility is taken for investment losses based on this information. The content should be interpreted solely for informational purposes.