The top three meme cryptocurrencies in terms of market value are Dogecoin (DOGE), Shiba Inu (SHIB), and PepeCoin (PEPE). However, they have all suffered losses in the past week as new rivals emerged in the same niche.
The downward trend of Bitcoin (BTC) and Ethereum (ETH), which influence the whole crypto market, also contributed to their decline.
New Contenders Are Rising to the Top
In the crypto space, Dogecoin (DOGE), Shiba Inu (SHIB), and PepeCoin (PEPE) are the most valuable meme coins. But they have not been doing well lately, as they faced competition from other similar coins. They also felt the impact of the falling prices of Bitcoin (BTC) and Ethereum (ETH), which affect the whole crypto market.
Last week, the market was fascinated by the launch of similar projects like PEPE 2.0 and Shib 2.0. According to CoinGecko data, PEPE 2.0’s market cap skyrocketed to over $50 million in just a few days after its launch.
Meanwhile, a new meme coin project, Wall Street Memes, from the creators of the popular Wall St Bulls NFT collection, has collected over $13 million in less than a week.
As more players entered the space, PEPE lost its appeal to the traders. The trading volumes for the meme coins dropped to the levels before the pump in June, showing reduced interest.
The price drop in BTC and ETH last week due to the U.S. Federal Reserve’s plans to raise interest rates also contributed to the sell-off in meme coins.
A brief dip below $30,000 on Friday last week showed that BTC was struggling to hold its support level, and it was still trading around $30,165. ETH also faced downward pressure and dropped under $1,900, losing the bullish momentum it had in June. It was trading at $1,861 at the time of writing.
Pepe is an example of how a meme coin can rise and fall in a matter of months, depending on the market sentiment, hype, and innovation. Pepe shows that while meme coins can be fun and profitable in the short term, they also carry high risks and volatility in the long term.