Memecoins Hit Hard by Market Downturn

The broader crypto market downturn has impacted memecoins significantly.

The Block’s GMCI index for memecoins indicates a drop of 8.87% in the past 24 hours. The top three memecoins by weight—Dogecoin, Shiba Inu, and Pepe—experienced declines of 9.23%, 2.36%, and 13.87%, respectively.

Solana memecoins were also heavily affected, with their market capitalization decreasing by 16% within a day.

Adam Cochran, a general partner at Cinneamhain Ventures (CEHV), remarked on the trend: “Memecoins tend to get hit hard during market downturns. We’re starting to flush out memes. The ‘graduation rate’ of coins listed on Pump Fun has stayed stagnant at 1.4%. Moreover, no new coins have reached the $20 million fully diluted valuation (FDV) level, illustrating that memes suffer the most during any volatility. This suggests we’re rinsing out the meme cycle.”

As of 5:00 p.m. ET (21:00 UTC) on Aug. 5, Dogecoin, the leading memecoin by market capitalization, was trading at $0.094 according to The Block Prices.