According to Cointelegraph, the memecoin sector has experienced a substantial drop in market capitalization, reaching levels last observed in July. This decline follows a sharp crash in the crypto market on Friday, which saw meme-based tokens struggling to regain their footing. CoinMarketCap data revealed that on Saturday, the memecoin sector plummeted to a low of $44 billion, marking an almost 40% decrease from $72 billion the previous day. By Sunday, the market showed slight recovery, climbing to $53 billion, a level reminiscent of July before a Solana-based memecoin surge sparked a late-summer rally.
Over the past four months, the memecoin market cap has consistently remained above $60 billion, driven by strong retail interest in meme-based tokens, particularly those associated with Solana and BNB Chain. However, the recent downturn signifies a shift in momentum. Currently, the memecoin sector's market cap stands at $57 billion, still significantly lower than its recent performances. CoinMarketCap data indicates that the top 10 memecoins account for approximately $47 billion, representing more than 82% of the sector's total market capitalization. At present, all these tokens are trading in the red, both on the 24-hour and seven-day charts.
Prominent meme tokens such as Dogecoin (DOGE), Shiba Inu (SHIB), and Pepe (PEPE) have reported weekly losses ranging from 13% to 22%. Other leading memecoins like Bonk (BONK) and Floki (FLOKI) have seen declines exceeding 20% over the past week. U.S. President Donald Trump's official memecoin token has also been affected by the crash, showing a 20% decrease in the weekly charts. While memecoins continue to grapple with the aftermath of the crash, other sectors have demonstrated quicker stabilization and recovery.
Non-fungible tokens (NFTs) began to rebound a day after the crash. During the market sell-off, the NFT space saw a 20% drop in overall value, with approximately $1.2 billion wiped from the sector. However, the niche swiftly recovered, regaining 10% the following day. Crypto exchange-traded funds (ETFs) also attracted fresh inflows after experiencing outflows due to the recent market turmoil. On Tuesday, spot Bitcoin ETFs recorded $102 million in net inflows, while Ether ETFs saw $236 million in net inflows. Established cryptocurrencies have also shown resilience, with Bitcoin (BTC) recovering from a drop to $102,000 and now trading above $111,000, according to CoinGecko. Ether (ETH), which fell below $3,700, has rebounded to levels above $4,000.
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