The prices of Dogelon Mars, Dogecoin, Baby Doge, and Floki Inu are plummeting.
Interest in meme coins has waned, causing prices to plunge. Dogelon Mars, known as ELON, crashed to $0.0000003, the lowest it has been since January 23, dropping over 40% from March’s high. Shiba Inu also decreased despite the growing excitement surrounding the launch of Shibarium. SHIB declined to $0.000010, 31% lower than the year-to-date high. Other meme coins including Tamadoge, Floki Inu, and Bone ShibaSwap have also retreated. The total market cap of cryptocurrencies decreased below $1tn for the first time in months. The Federal Reserve’s plan to continue hiking interest rates is one reason for the ongoing sell-off. Historically, high-risk assets tend to underperform when the Federal Reserve is tightening, and investors tend to favour the US dollar for its safety. Jerome Powell, the head of the Federal Reserve, stated that interest rates would likely remain higher than previously expected. Another reason for the fall in meme coin prices is the ongoing slow collapse of Silvergate Capital, which provides crypto banking services to companies in the sector. It warned last week that it may struggle to continue operating as a going concern and closed its key crypto transfer services. Additionally, there are concerns about the lack of utility of meme coins, with most people owning them for speculative reasons, rather than for the benefits they offer. Particular coins such as Shiba Inu and Baby Dogecoin are developing their ecosystems, but their use is still modest.