For the better or worse, memecoins have become a considerable part of the cryptocurrency market. They seem to be the predominant means of entry into the world of crypto for retail investors.
However, the past couple of weeks have been nothing but challenging for memecoin investors, as many of them are down 50% or more from their recent all-time highs.
Shiba Inu (SHIB) Lost Half of Its Value
Shiba Inu (SHIB) is undoubtedly the market leader in the memecoin field for the past month or so, stealing all the glory from the former memecoin champ, Dogecoin (DOGE). While DOGE remains with a higher market cap than SHIB, it was the latter that stole the show at the end of the third quarter of this year.
In October, SHIB’s price skyrocketed by more than 1000% and reached an all-time high of around $0.00008616 (according to CoinGecko).
Unfortunately, the momentum wasn’t sustained as it appeared to have been driven mainly by retail investors. This, combined with the fact that SHIB’s total supply is highly concentrated, led to what happened next.
Fast forward a few weeks later, and SHIB’s price is down almost 50%. There’s no real sign of the euphoria that we saw in October, and the interest in the cryptocurrency is fading quickly.
Other Memecoins Follow Suit
It appears that the fate of many other memecoins without a reasonable purpose and created out of some sort of an internet meme, commonly associated with Elon Musk, is similar.
Floki Inu (FLOKI) – the coin named after Musk’s dog – is down 51.7% since its all-time high reached just 14 days ago. Baby Doge (BABYDOGE) is down 46.6% since its peak. Dogelon Mars (ELON) is down 32% since its peak was achieved on October 30th.
The situation with other memecoins centered around the same theme is similar – all of them suffer considerable losses.
The thing about them, though, is that you never know when they will start trending again. The SHIB pump came seemingly out of the blue, and it was propelled to an extend where SHIB had a larger trading volume compared to its own market cap.
It appears, though, that the gains went away as quickly as they came, leaving many people holding bags of questionable investments.
There are plenty of lessons to be learned from this, though. Right off the bat, never go chasing a pump. If you’ve missed – you’ve missed it, and you’re better off looking for a fresh opportunity rather than catching knives.
When it comes to memecoins, they obviously can no longer be disregarded as potential investment choices, but it’s also important to conduct proper due diligence before throwing your cash at the “next SHIB.”