Bitcoin Fees Return to Normalcy, Resulting in a Slowdown of Memecoin Mania
The craze for memecoins, such as the popular PEPE coin, appears to be dying down, with prices falling sharply and Bitcoin transaction fees stabilizing. PEPE lost 60% of its value after surging to $0.00000431 earlier this month. Its market value peaked at $1.6bn before plummeting to current levels of $720m. The memecoin market is often considered high risk by speculators, who may trade BTC and ETH holdings for them. As a result, the memecoin fever could signify a top in the local market, heralding a multi-month decline for Bitcoin. The situation is similar to that experienced in May 2021 when Dogecoin led the memecoin boom. Joe Rotunda, director of the Texas State Securities Board enforcement division, warned that investors could face significant losses as the value of memecoins plummets after the buzz disappears. However, PEPE still trades with a daily volume of around $360m. Meanwhile, Bitcoin network pending unconfirmed transactions have dropped and transaction fees have stabilized around $3.76, following a spike to over $30 earlier in May at the height of the BRC-20 and Ordinal inscription craze. Bitcoin prices traded up 1.4% on the day at $27,191 during the Asian trading session.
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