Shiba Inu (SHIB) Collapses 10% as Meme Coins Plunge

Meme Coins Face Double-Digit Losses

According to CoinGecko, the meme coin sector is experiencing significant losses. Shiba Inu (SHIB), the second-largest meme coin by market capitalization, has declined approximately 11% in the past 24 hours.

Other meme coins have suffered similar losses, including Bonk (BONK), FLOKI (FLOKI), and dogwifhat (WIF). WIF has lost 14% over the past 24 hours.

Meme coins, considered high-risk speculative investments, are responding to Bitcoin's weakness. The largest cryptocurrency has fallen below $66,000 after failing to establish a foothold above $67,000, dragging the entire cryptocurrency market down with it.

XRP remains the only top 100 cryptocurrency showing gains, unexpectedly decoupling from Bitcoin on Monday.

Unlikely Altcoin Season

Financial analyst Murad Mahmudov believes another altcoin season is unlikely due to the depletion of American households' excess savings, which peaked in 2021. Despite Bitcoin's new all-time high, many altcoins are still significantly below their 2021 peaks. Dogecoin and Shiba Inu, the leading meme coins, have lost 83.3% and 79%, respectively.

Mahmudov also highlights the oversupply in the altcoin market, as the ease of creating new cryptocurrencies in 2024 has contributed to altcoins' struggles.

Last month's celebrity meme coin craze briefly revived speculation, but its success appears to have been short-lived.