The memecoin sector’s market capitalization fell to levels last seen in July, as meme-based tokens struggled to recover from losses incurred during the crypto market’s sharp crash on Friday.
CoinMarketCap data showed that on Saturday, the memecoin sector dropped to a low of $44 billion, an almost 40% plunge from $72 billion the previous day. On Sunday, the memecoin market slightly recovered to $53 billion, a level last seen in July before a Solana-based memecoin frenzy ignited the sector’s late-summer rally.
Over the last four months, the memecoin market cap has consistently remained above $60 billion, as meme-based tokens have maintained strong retail interest, fueled by Solana and BNB Chain. However, the recent plunge marked a shift in momentum.
At the time of writing, the memecoin sector’s market cap hovers at $57 billion, still much lower than its recent performances.
Top memecoins struggle to recover from Friday’s bloodbath
According to CoinMarketCap, the top 10 memecoins account for about $47 billion, more than 82% of the sector’s total market capitalization. At the time of writing, all these tokens were trading in the red, both on the 24-hour and seven-day charts.
The biggest meme tokens like Dogecoin (DOGE), Shiba Inu (SHIB) and Pepe (PEPE) all posted weekly losses from 13%–22%. Other top-ranked memecoins like Bonk (BONK) and Floki (FLOKI) dropped by over 20% in the last week.
US President Donald Trump’s official memecoin token was also hit by the crash and is 20% down in the weekly charts.
Top memecoins down by double-digit percentages. Source: CoinMarketCapRelated: High-leverage crypto trader James Wynn liquidated again, this time for $4.8M
Other sectors quickly stabilized after the market crash
While memecoins are still recovering from the aftermath of the crash, several other sectors have shown signs of faster stabilization and recovery.
A day after the crash, non-fungible tokens (NFTs) started to bounce back. During the market sell-off, the overall value of the NFT space dropped by 20%, with about $1.2 billion in value erased from the sector. However, the niche quickly recovered, regaining 10% the day after the crash.
Crypto exchange-traded funds (ETFs) also quickly attracted fresh inflows after a wave of outflows following the recent market meltdown. On Tuesday, spot Bitcoin ETFs saw $102 million in net inflows, while Ether ETFs recorded $236 million in net inflows.
More established cryptocurrencies were also quick to recover. Bitcoin (BTC), which dropped to $102,000, is trading above $111,000, according to CoinGecko. Ether (ETH), which declined to below $3,700, has recovered to levels above $4,000.
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Source: https://cointelegraph.com/news/memecoins-drop-july-levels-market-recovery?utm_source=rss_feed&utm_medium=feed&utm_campaign=rss_partner_inbound
