TL;DR
- The meme coin niche witnessed a significant correction today (November 15), but its total market cap remains close to $120 billion.
- While such tokens can deliver massive gains in the past, their speculative nature makes them quite dangerous for inexperienced traders.
Heading South
The past 24 hours have not been kind to the cryptocurrency market, with numerous leading assets charting substantial losses. Bitcoin (BTC) dipped below $88,000, Ethereum (ETH) tumbled to approximately $3,000, while Solana (SOL) is down by 4%.
The meme coin sector has had it even worse. Dogecoin (DOGE) plummeted by 8%, whereas its biggest rival – Shiba Inu (SHIB) – dropped by 9%.
Some of the assets whose prices skyrocketed in the last few days, such as Pepe (PEPE) and Peanut the Squirrel (PNUT), are now among the poorest performers, registering double-digit losses. Other tokens joining that club include Popcat (POPCAT), Neiro (NEIRO), dogwifhat (WIF), and more.
However, it’s not all doom and gloom since some meme coins are well in the green zone. The examples include CAT (+10%), BRETT (+13%), SPX (+17%), DEGEN (+26%), and others.
Meanwhile, the total market capitalization of the meme coin niche remains well above $100 billion. Earlier this week, the figure surpassed the record $120 billion.
Meme Coin’s Volatile Nature
Meme coins have emerged as a major trend in the cryptocurrency world, frequently making the headlines due to their rapid price surges and widespread popularity driven by Internet culture.
Many tokens, including DOGE, SHIB, BONK, and PEPE, have recorded triple and even quadruple increases in the last year, thus triggering significant profits (at least on paper) for those jumping on the bandwagon in the early days.
However, memes can just as easily experience a major correction, which could lead to devastating losses for inexperienced or overleveraged traders. After all, many of these assets lack fundamental value in terms of utility or intrinsic worth, and their prices are largely influenced by market speculation.
That said, people are advised to enter the ecosystem after conducting proper due diligence and invest only as much as they are ready to part with.
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