Memecoins, cryptocurrencies inspired by internet memes and jokes, saw a surge of popularity and price appreciation in 2021. However, in recent months memecoin prices and discussion have cooled off significantly. This article will analyze the current state of major memecoins like Dogecoin and provide perspective on their place in the broader crypto market.
Source: Santiment – Start using it today
What you'll learn 👉
Declining Interest in Memecoins
According to data from Santiment, an analytics platform, memecoin discussion and prices have declined since the crypto market top in mid-July 2022. While altcoins overall have seen more declines than gains in recent months, memecoins have been especially weak.
Dogecoin (DOGE), the original memecoin started in 2013, has seen the lowest discussion rates since 2020. This suggests waning interest among crypto traders and communities.
Shiba Inu (SHIB), which gained steam as a “Dogecoin killer” in 2021, is down nearly 70% from its October 2021 high. Discussion of SHIB is a fraction of peak levels as well.
The declining interest indicates memecoin mania has cooled off significantly from 2021 heights. Factors include lower risk appetite amid crypto bear market conditions.
Are Memecoins Losing Their Luster?
Memecoins initially attracted interest due to lighthearted communities, often centered around Dogecoin. The unexpected gains of early Dogecoin buyers also fueled interest.
However, memecoins have arguably become less about the memes recently. Instead, traders have viewed them more as speculative assets to try to purchase early and sell for profits.
The trendiness and novelty of memecoins may be wearing off as investors take a more cautious approach post-2021. With less hype, prices and volumes have declined.
Memecoin mania was a significant subplot of the 2021 crypto bull market. However, data shows memecoin discussion and prices have cooled considerably. While pockets of interest remain, memecoins do not dominate the crypto conversation as they once did. It remains to be seen if they can regain interest and traction.
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