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The cryptocurrency market is experiencing a major correction, with a particularly pronounced decline in memcoins. As investors shift to more solid assets, are we seeing a paradigm shift in the industry?
Memecoins disaster
The cryptocurrency market recorded a 3% decline over the past 12 hours, with the total market capitalization reaching its lowest monthly level at $2.48 trillion. However, it is the meme coins that have suffered the most, with double-digit losses for most of them.
Bitcoin pioneer Kyle Chasset highlighted on X the speed at which investors are turning away from these speculative assets. This movement is called the “flight to quality,” as traders now prefer crypto assets with a clear function or purpose.
According to CoinGecko, the market cap of memecoins fell by 14%, to settle at $48.8 billion. The MAGA TRUMP coin was the hardest hit with a decline of 34%, while other coins such as dogwifhat, Brett, and Book of Meme also recorded losses of more than 14%.
Even industry leaders like Dogecoin, Shiba Inu, and Pepe were not spared. Only the DOG-GO-TO-THE-MON symbol, based on runes, had managed to stay in the green zone for the past seven days.
Generalized correction
While memcoins are the most affected, the decline is impacting the entire altcoin market. Solana lost 7%, falling to $132, while Cardano fell 7.8% to settle at $0.37.
Other assets such as Avalanche (AVAX), Uniswap (UNI), Internet Computer (ICP), and Near Protocol (NEAR) also suffered. Meanwhile, Bitcoin found support around $65,000 but was stuck in a sideways channel for three and a half months.
This generalized correction calls into question the idea of an “escape to quality” at this point. However, a more pronounced decline in memecoins could be a sign of a changing mindset among investors.
After a period of speculative euphoria, it seems that the market has begun to mature and search for projects that provide real added value. Only time will tell whether this trend will continue or whether risk appetite will return.
The memcoin debacle may mark a turning point for the cryptocurrency industry. While investors appear to prefer more solid assets, it remains to be seen whether this “flight to quality” will be confirmed over time.
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Passionate about Bitcoin, I aim to explore blockchain and cryptocurrency methods and share my discoveries with the community. I live in a world of private life and financial freedom guaranteed to everyone, which confirms that Bitcoin is the tool that can make this possible.
Disclaimer
The views, thoughts and opinions expressed in this article are solely those of the author and should not be considered investment advice. Do your own research before making any investment decisions.