- The community-driven meme market is facing unprecedented selling pressure
- Doge’s price is down by 35.3% in July so far according to Trading View and FTX
Top meme coins have performed dismally in the month of June as compared to the month of May. Most of the meme tokens are posting negative gains. The leading meme token by market capitalization, Doge’s price is down by 35.3% in July. It is likely to close the month at a loss again.
Retail investors and traders are losing interest and exiting their positions in crypto. This results from the recent meme token market now saturated with many alleged pointless meme coins.
To begin with, numerous meme coins have been launched following the Dogecoin phenomenon by Tesla CEO Elon Musk. Included is the doge-imitator Shiba inu token, which sparked a wave of interest in the tokens. More so, the GameStop stock trading mania earlier this year just fueled the frenzy.
Following then is the creation of meme tokens Dogelon mars (ELON), and doggy (DOGGY). Similarly, is the launch of CUMROCKET (CUMMIES), a token that powers a non-fungible token marketplace for the adult entertainment industry. Even more, Loser coin (LOWB), a token representing a self-deprecating culture in China.
Annabelle Huang, a partner at Hong Kong-based Amber Group, said
Meme token craze “was over a while ago,”. “Then it’s all about the mining ban and the ‘great migration’ [in China] as I call it.”
The community-driven meme market is facing unprecedented selling pressure. The selling pressure is pointing towards a reduction in the presence of new retail investors. Likewise, China’s regulations on crypto trading and Bitcoin mining have caused hurdles on meme tokens.
China’s crackdown “is making it harder for people to invest new money into the market, and rumors of further regulations on centralized exchanges have raised concerns about further investing,” Rachel Lin, CEO of decentralized derivatives exchange SynFutures, said.
With this crypto traders and retail investors are losing interest in meme tokens and moving on to the next projects. Beyond the dropping prices, these meme coins have actually seen great traction in the wider crypto ecosystem.