Meme Coins Tumble Alongside Crypto Market Slump

Meme coins have experienced a decline of 3%, with most of the top 10 coins trading in the red. While Dogecoin and Shiba Inu have shown mixed performance, both have seen a decrease in large transaction volume and a drop in the SHIB burn rate. Despite the current lull, experts remain optimistic about the long-term potential of meme coins, highlighting the significant interest and holding power they possess.

Meme Coins Witness Market Decline Amidst Crypto Slump

The cryptocurrency market has experienced a significant downturn, with meme coins mirroring the broader trend. As of Wednesday, the top ten meme coins have predominantly traded in the red, with overall losses of approximately 3%.

Major Meme Coins Struggle

Dogecoin (DOGE) and Shiba Inu (SHIB), two of the most prominent meme coins, have witnessed declines in their values. Dogecoin has shed 2% over the past 24 hours, while Shiba Inu has managed to eke out a modest gain of 0.2%.

Subdued Activity

Both Dogecoin and Shiba Inu have exhibited a lack of significant activity on Wednesday. Dogecoin's daily active addresses have increased by a modest 8.8% in the past 24 hours. However, large transaction volume has failed to stimulate interest, with both meme coins experiencing a 25% decrease in this metric over the same period.

The Shiba Inu burn rate has also declined, while daily transactions have fallen after approaching $1 million yesterday.

Bitcoin Correlation Remains Strong

Notably, both Dogecoin and Shiba Inu exhibit a strong correlation with Bitcoin (BTC), which has declined by 1.8% in Wednesday trading. This correlation suggests that the performance of meme coins is heavily influenced by the broader cryptocurrency market sentiment.

Long-Term Optimism Persists

Despite the current market lull, crypto traders and community experts maintain a long-term optimistic outlook for meme coins, highlighting the strong interest and holding power these assets have attracted.

Analysts Predict Future Peaks

Crypto analysts anticipate that meme coins will experience further appreciation in the coming months, as evidenced by a 1.3% increase in Shiba Inu's open interest. Digital asset consultant S4mmyEth has pointed out Dogecoin's significant presence on the Ethereum blockchain, representing 6%, while Dogwifhat accounts for 4% of Solana's activity.

Upcoming Industry Event to Address Meme Coin Influence

The impact of meme coins and Bitcoin's emergence as an institutional asset class will be key topics explored at Benzinga's upcoming Future of Digital Assets event on November 19th.