Every bull in the cryptocurrency markets has a particular trend or hero that stands out. The recent bull was centered around meme coins. During this period, some meme coins experienced huge gains, but these gains also brought millions of dollars in losses. Meme coins are known as assets that promise big gains in a short period of time but can lose value just as quickly. As such, they have the potential to make many investors rich quickly, but they can also lead to big losses just as quickly.
The fact that meme coins have been the centerpiece of the bull market was considered by experts to be the reason for the market's instability and the short duration of the bull run. Experts say that due to the extreme volatility and speculative nature of meme coins, the markets would have grown healthier if investors were to focus on more stable projects rather than meme coins. However, the large amount of capital that meme coins attracted to the markets also led to rapid declines and significant losses, causing the markets to enter a bear trend in a shorter period of time.
So, does it really make sense to invest in meme coins?
Over the past year, it turns out that the top 10 meme coins have suffered significant losses. According to data shared by “Lookonchain” on the X platform, meme coins have fallen by an average of 63.73 percent from their peak values. The decline coincided with the rise of PolitiFi meme coins, largely attributed to the upcoming US presidential election. In addition, SunPump and Pump.fun tokens have also attracted investors' attention recently.
52-week highs and lows
For example, Dogecoin (DOGE) hit a peak of $0.2266 and fell to $0.05747, a 74.64 percent loss from its 52-week peak. Shiba Inu (SHIB), on the other hand, fell as low as $0.000006688 after reaching a peak of $0.00004534, a decrease of 85.25 percent. PEPE experienced one of the sharpest declines, falling from $0.00001718 to $0.0000006071, a loss of 96.47 percent.
There are also recoveries
Despite these significant declines, some meme coins are showing signs of recovery. For example, FLOKI, which fell 95.56 percent from its peak value, has reduced its loss to 65.97 percent. Similarly, POPCAT, once down 99.62 percent, is now showing a 43.77 percent drop from its peak price. This signals a possible revival in investor interest. Overall, the average decline among these meme coins stands at 63.73 percent, indicating that while some coins have recovered slightly, the overall market remains in a challenging situation.
In a turbulent market, there are signs of renewed interest in meme coins. As of August 13, the total market capitalization of meme coins rose to about $38.55 billion, representing an increase of 2.25 percent. Trading volume also increased by 21.72 percent to $3.92 billion, indicating continued investor interest in meme coins.
Analyst Murad Mahmudov notes that only seven meme coins are currently ranked among the top 100 cryptocurrencies.
As a result, although meme coins, which played a leading role in the last bull, have made significant returns, the big picture shows that they are in a downward spiral with an average decline of 65%.
