Memecoins tank amid crypto market downturn

The Bear Market's Impact on Memecoins

The cryptocurrency market downturn has significantly impacted the niche of memecoins.

The Block's GMCI index for memecoins indicates a reduction of 8.87% within the last 24 hours. Dogecoin, Shiba Inu, and Pepe, the top three assets by weight, have witnessed declines of 9.23%, 2.36%, and 13.87%, respectively.

Solana memecoins have also been severely affected, with a 16% decline in market capitalization over a single day.

According to a general partner at Cinneamhain Ventures, memecoins tend to be heavily impacted during market downturns.

Adam Cochran on the X social media platform observed, "Pump Fun's graduation rate remains stagnant at around 1.4%, and no new entrants have surpassed the $20 million fully diluted valuation. Memecoins continue to be most vulnerable to market volatility, suggesting the phasing out of the meme cycle."

As of 5:00 p.m. ET (21:00 UTC) on August 5, Dogecoin, the leading memecoin by market capitalization, traded at $0.094.